Alto Douro Incubator ADI Universidade de Trás-os-Montes e

Alto Douro Incubator (ADI) Universidade de Trás-os-Montes e Alto Douro Raquel Sa: UTEN Austin Internship, Feb 2010

The Alto Douro Regional Model Academic Business Gov’t Community needs Talent Technology Capital National & International Market realities Job & Wealth Creation Universidade de Trás-os-Montes e Alto Douro Know-how

Know -How University Business Incubator Investments Universidade de Trás-os-Montes e Alto Douro NEW JOBS

ADI Two-fold Mission 1) To facilitate economic development through the support of entrepreneurship and new venture incubation 2) To provide opportunities for UTAD students and faculty to study new venture development in a life-scale, yet controlled (scientific laboratory) environment Universidade de Trás-os-Montes e Alto Douro

Spin-Out Companies and the Knowledge Technology Transfer Gap R&D Funding • Government • University • Corporate Application of R&D for firm: GAP • Diversification • Expansion • New formations Incubator Role • • • Technology valuation/protection Market research Networking for financial support Manufacturing access Distribution, sales, and service Managerial know-how: fast growth Universidade de Trás-os-Montes e Alto Douro

Benefits of Alto Duro Incubator Enhance credibility Provide access to local business networks Universidade de Trás-os-Montes e Alto Douro Tenant Firms Provide access to national/ international markets and resources Shorten learning curve

Alto Douro Incubator Catalyze new technologies to: • Achieve accelerated commercialization successes • Promote path-breaking technologies for creating newer industries and “smart” infrastructures Help both low-tech and hi-tech businesses maneuver past the “valley of death” Universidade de Trás-os-Montes e Alto Douro

Key Components of the Alto Douro Incubator Gov’t Private University Incubator Affiliation . Entrepreneur’s Technology ADI (non-profit/profit) Support Systems Capital Universidade de Trás-os-Montes e Alto Douro Administration Know-How Networks Facilities T e n a n t C o m p a n i e s Faster to market & fast growth Profits Viable Companies Economic Development Job Creation Industrial Competitiveness International Branding Training & Education

ADI Value Proposition • Aggregate and channel value from stakeholders for the benefit of member companies – UTAD research, faculty, students, and staff – Service providers, mentors, investors, and corporate partners • Return value to stakeholders – Create wealth in our communities by systematically monetizing new technology ventures – Reduce the risk inherent in new ventures – Provide entrepreneurial business education and engage in leading edge research Universidade de Trás-os-Montes e Alto Douro

Incubator Tenant Services Infrastructure Services Strategic Services Operational Services Office Facilities Business Plan Improvement, etc. Financial Management Furniture Mentors & Advisors Human Resource Management Business Machines Key Business Strategies Dev. Marketing & Public Relations Building Security IP and/or Product Development Professional Service Providers Universidade de Trás-os-Montes e Alto Douro

Community Incubator Services To Universities To Local Businesses To Local Investors Provide Lab for Business Faculty Provide Resources for Bus. Dev. Establish Capital Network Provide Interns Opportunities Increase local ent’l awareness Assist Companies create best pitch Catalyze Entrepreneurial Ed Provide Sector Specific Advice Advise Companies before / after $ Increase Regional Ent’l Awareness Increase local networks Accelerate Company Success Universidade de Trás-os-Montes e Alto Douro

Business Incubators Can • Assist leveraging of regional technology and know-how resources • Promote partnerships between large companies and entrepreneurial firms • Facilitate public/private collaboration • Help develop a regional cluster • Act as a “lightening rod” to attract entrepreneurial talent Universidade de Trás-os-Montes e Alto Douro

The ADI Commercialization Value Chain Capitalize Investors G ro w E n g a g e Ma r k e t Productize Technology Transfer Office University Universidade de Trás-os-Montes e Alto Douro I n n o v a te Research Alto Duro Incubator

ADI within the UTAD Hierarchy (Raquel please review & change as needed Office of the Rector Research Faculty Office of Technology Transfer Business Faculty ADI Incubator The University Commercial Sector Universidade de Trás-os-Montes e Alto Douro

Incubation Process at ADI Vet Internally Screen Application Admit into ADI Set Milestones Review Graduate from ATI Vet Externally People Market Technology Universidade de Trás-os-Montes e Alto Douro Up to 3 years or: 1) When a major investment funding is obtained or 2) When significant cash from operations are achieved Company pays ADI an annual membership fee Company donates equity to UTAD

The Right SELECTION Criteria for Company Tenants • Strong business plan & team • Technological credibility • Market potential • Employment potential • The right mix of companies within incubator and for the region • Experienced judgment for business success Universidade de Trás-os-Montes e Alto Douro

The Value of a Business Incubator to Tenants Increases Credibility Increases access to business networks Tenant Firms Increases access to resources Shortens learning curve Increases access to markets Accelerated Firm Growth Universidade de Trás-os-Montes e Alto Douro

The Right GRADUATION Criteria for Company Tenants • Job Growth Potential • Financial Potential • Market Potential (global) • Time to leave “home” • Variations by technology type • Seasoned judgment Universidade de Trás-os-Montes e Alto Douro

ADI Future Strategic Initiatives • Focus on technology sectors relevant to Alto Duro and develop sector focused incubation – Select staff members with sector-specific industry experience – Leverage know-how at UTAD and business activity in Alto Duro • Fund operations through alternative revenue sources – Public-Private Partnerships – Research Grants • Enable start-up companies to “Go Global” – Establish best practices and provide support for internet marketing plan – Leverage global contacts established by UTEN international partner programs Universidade de Trás-os-Montes e Alto Douro

ADI: Potential Hi Tech Sectors Nano-Bio IT/Software Wireless ADI Digital Media Other… Clean Energy Universidade de Trás-os-Montes e Alto Douro

Ten Success Factors Concise program milestones with clear policies and procedures On-site learning and leveraging of resources In-kind professional support Tie to a university Selection process for tenants Perception of success Universidade de Trás-os-Montes e Alto Douro Access to financing and capitalization ADI Entrepreneurial education Community support Entrepreneurial networks: regional, national, international

ADI Success Factors • Need a champion • First Director is key • Gain community support • Develop viable business model adapted to Alto Douro • Build entrepreneurial ecosystem including ADI service providers Universidade de Trás-os-Montes e Alto Douro

Critical Success Factors Advisory Board Academic Business Government Leaders/visionaries/champions The Director Nurturing/disciplined Networking skills Resourceful/adaptable/political Business experience Universidade de Trás-os-Montes e Alto Douro

Critical Success Factors (continued) An Entrepreneurial Culture Bootstrapping mentality Leverage/scrounge resources Hard work/long hours Community buy-in & support Resources Tangibles Intangibles = Know-how & Networks (MOST IMPORTANT) Context/Culture: Community Support Universidade de Trás-os-Montes e Alto Douro

Environment and Culture 1. Successful commercialization environment requires regional support and know-how 2. An entrepreneurial culture 3. Tenant company entrepreneurial and professional training 4. Internally cooperative and externally competitive 5. “Open organization” – links to academia, government, business 6. An environment of continuous learning for commercialization-both good & bad lessons learned Universidade de Trás-os-Montes e Alto Douro

Incubator Start-up Task List 1. 2. 3. 4. 5. 6. 7. Recruit a team of advisors Recruit an incubator Director Establish Company Selection/Exit Processes Establish Physical Facilities Recruit network of Service Providers Develop Web site Recruit Tenant Companies Universidade de Trás-os-Montes e Alto Douro

ADI Goals & Metrics Commercialize Science and Technology for wealth and job creation R&D consortia, UTAD, firms, start-ups Help • Build management teams • Secure financing • Accelerate time to market • Graduate fast growth firms • Create direct technology jobs at low cash cost per job • Attract and retain talent to Alto Douro • Build “Smart Infrastructure” of professional service providers Universidade de Trás-os-Montes e Alto Douro

Metrics for Success Academic 1. Develop technology entrepreneurship and management curriculum 2. Successful placement of students 3. Experimental learning 4. Research 5. Royalty and license fees Universidade de Trás-os-Montes e Alto Douro

Establish Incubator Facilities An incubator can be established with a small staff, in relatively modest facilities. Regional donations can assist with securing office furniture & supplies, and also in providing complimentary professional services to early-stage companies. As success increases, so can the facilities and staff. Universidade de Trás-os-Montes e Alto Douro

EVOLVING ADI’s VALUE PROPOSITION Value to today’s entrepreneur PHASE THREE PHASE TWO “Market Making” PHASE ONE Start-up infrastructure support Industry-specific accleration (clean energy, wireless, etc. ) Time Services offered to entrepreneurs • Office space At left, plus: • Professional services • In-depth consulting • Capital networks • “Virtual Board” • Access to key global partners • Business consulting • Targeted capital matchmaking Universidade de Trás-os-Montes e Alto Douro

ADI will provide strategic, operational, and infrastructure support to promising, early-stage technology-based ventures. ADI will work with entrepreneurs and investors, professional service providers, and industry leaders to benefit its member companies. Universidade de Trás-os-Montes e Alto Douro