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Todd Strother Ph.D. Center for Technology Commercialization - - PowerPoint PPT Presentation

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Todd Strother Ph.D. Center for Technology Commercialization UW-Extension, Division of Business & Entrepreneurship SBIR Workshop Myths and Misconceptions of SBIR/STTR October 3rd, 2018 1:00 PM - 4 :00 PM Madison, WI MG&E Innovation

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Todd Strother Ph.D.

Center for Technology Commercialization

UW-Extension, Division of Business & Entrepreneurship

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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR Workshop

Myths and Misconceptions of SBIR/STTR October 3rd, 2018 1:00 PM - 4 :00 PM Madison, WI

MG&E Innovation Center, 510 Charmany Drive

http://bit.ly/SBIRMyths

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Sponsors

608-219-4183 todd.strother@uwex.edu

  • Govt. funding for Innovative Companies

– Federal SBIR/STTRs – Examples of funded companies – Eligibility and the story – Wisconsin successes – Center for Technology Commercialization

  • Our programing
  • Our grant funds available

Outline

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Sponsors

608-219-4183 todd.strother@uwex.edu

  • Identify potential SBIR type companies
  • Learn criteria used to evaluate a fit for the

SBIR/STTR program

  • Summarize Wisconsin’s success with funding
  • Relate how the CTC assists companies

Outline and Objectives

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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR/STTR Program

  • Small Business Innovation Research Grants

– Funds Small Business Research – For development of new products

  • Grant goes to the Company
  • ~3.5% of Federal Research $ is set aside to

fund Small Company Research

  • ~$2.5 Billion per year.
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Sponsors

608-219-4183 todd.strother@uwex.edu

Purpose/Background of SBIR / STTR

  • Small Business Administration (SBA)

– directs 11 other federal agencies

Encourages:

  • Small businesses to undertake R&D projects

– Are technically High Risk, High Payoff – Have high potential for commercialization – Disruptive, not iterative

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Sponsors

608-219-4183 todd.strother@uwex.edu

STTR Participating Agencies

  • Department of Defense
  • Department of Health and Human Services

– (NIH, CDC, FDA and ACF)

  • Department of Energy
  • NASA
  • National Science Foundation
  • Department of Agriculture
  • Department of Commerce
  • Department of Homeland Security
  • Environmental Protection Agency
  • Department of Transportation
  • Department of Education
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Sponsors

608-219-4183 todd.strother@uwex.edu

  • Phase I Final Report
  • Commercialization Plan
  • Technical Proposal
  • Project Team
  • Environment
  • Budget
  • Sales
  • Investment Capital
  • Licensing
  • Product Rollout Plans

SBIR/STTR Roadmap

Phase I

Feasibility ~$150K

Phase II

Prototype ~$1M

Phase III

Commercial- ization

Technology Readiness

  • Technical Proposal
  • Project Team
  • Environment
  • Budget
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Sponsors

608-219-4183 todd.strother@uwex.edu

Technologies Suitable for SBIR/STTRs

Advanced Materials and Instrumentation NSF

Radom Corporation

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Sponsors

608-219-4183 todd.strother@uwex.edu

Technologies Suitable for SBIR/STTRs

Toxic Chemical Detection DOD

Platypus Technologies

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Sponsors

608-219-4183 todd.strother@uwex.edu

Technologies Suitable for SBIR/STTRs

Pharmaceuticals and Medical Treatments NIH

Stratatech

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Sponsors

608-219-4183 todd.strother@uwex.edu

Technologies Suitable for SBIR/STTRs

Walleye Hybrids USDA

Northside Industries

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Sponsors

608-219-4183 todd.strother@uwex.edu

Generally NOT Suitable for SBIR/STTRs

  • Established markets/consumer goods

– Restaurants, Dry cleaners, Auto repair

  • Engineering (where research is complete)

– Feasibility and prototypes are built; just need money to commercialize – Web apps

  • unless Innovative Research in a SBIR topic is required
  • Purchase of large equipment/facilities

– Need to purchase machinery to scale up manufacture

  • Low significance

– Current technology mostly solves the problem

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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIRs vs Investors

Similar

  • Successful commercialization is the end goal
  • Have to pitch your idea and company
  • Convince someone your idea is fundable
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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIRs vs Investors

Different

  • Govt. does not take equity in the company
  • Focus on tech vs. team
  • Govt does not control direction of company
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Sponsors

608-219-4183 todd.strother@uwex.edu

  • Identify potential SBIR type companies
  • Learn criteria used to evaluate a fit for the

SBIR/STTR program

  • Summarize Wisconsin’s success with funding
  • Relate how the CTC assists companies

Outline and Objectives

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SLIDE 17

Sponsors

608-219-4183 todd.strother@uwex.edu

Funding Road Map

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Sponsors

608-219-4183 todd.strother@uwex.edu

Go/No go Criteria

  • T – Topic:
  • E – Eligibility:
  • S – Story:
  • T – Team:
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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR/STTR Topic/Technology Fit

Develop SBIR/STTR topic search strategy

  • Is it an SBIR or an STTR topic?
  • Which agencies?
  • What are their topics of interest?
  • What are their deadlines?
  • What are their requirements?
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Sponsors

608-219-4183 todd.strother@uwex.edu

Highlights of Eligibility

  • For-profit company located in US
  • Company >50% owned/controlled by:

– US citizens, permanent resident aliens or domestic business concerns, OR – Multiple domestic VCs, hedge funds or private equity firms

  • <500 employees (including affiliates)
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Sponsors

608-219-4183 todd.strother@uwex.edu

What is Your SBIR/STTR “Story“?

  • A significant need/problem
  • Innovative solution
  • 2-3 research questions to answer
  • high impact commercial product?
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Sponsors

608-219-4183 todd.strother@uwex.edu

Winning Team

Principal Investigator

  • Directs the project
  • Qualifications - are they well trained in the topic?
  • Can they run a project
  • (Usually) An employee of the small business

Technical Team

  • Skilled technicians
  • Collaborators/consultants

Strategic Advisors and Partners

  • CTC staff
  • Consultants
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Sponsors

608-219-4183 todd.strother@uwex.edu

Selection and Evaluation Criteria

Peer Reviewed Process

Proposals are evaluated on three items:

  • A. soundness, technical merit, and

innovation

  • B. qualifications of the team
  • C. potential for commercial success
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Sponsors

608-219-4183 todd.strother@uwex.edu

  • Identify potential SBIR type companies
  • Learn criteria used to evaluate a fit for the

SBIR/STTR program

  • Summarize Wisconsin’s success with funding
  • Relate how the CTC assists companies

Outline and Objectives

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Sponsors

608-219-4183 todd.strother@uwex.edu

Successes and Influence

Since 2005

  • $200M in investments
  • $85M in SBIR/STTR funding
  • 51% of clients win SBIR awards
  • National average is 15-18%

Gov Business plan competition

  • 2 of the 4 winners in 2016
  • 7 of the 13 finalists in 2017 (2 of the 4 winners)
  • 8 of the 12 finalists in 2018 (3 of the 4 winners)

Early Stage Symposium

  • 9 of 28 Pitched in the Tech Council Investors’ Network
  • 3 of 21 in Elevator Pitch Olympics

39% 22% 39%

Client Distribution by County

Dane Other Milwaukee area

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Sponsors

608-219-4183 todd.strother@uwex.edu

Successes and Influence

SBIR Award Success for Wisconsin

  • Pretty much right in the middle 25th

Grant success history

  • Companies funded are flat
  • Grants awarded have dropped
  • Two companies accounted for multiple

grants (Lucigen and Orbitech)

  • Successful exits make them ineligible

10 20 30 40 50 60 70

2012 2013 2014 2015 2016 2017 Wisconsin SBIR Awards and Companies Awards Companies

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Sponsors

608-219-4183 todd.strother@uwex.edu

Successes and Influence

103 32 30 29 25

20 40 60 80 100 120

CA MA NY CO WI

USDA SBIR 2012-2018

USDA SBIR success for Wisconsin

  • Overall we are 5th in the country
  • BUT 2012-15 we were 4th
  • Over the last two years, we’ve slipped to 9th

WHY?

  • Previous companies are no longer applying for USDA grants
  • Whole Trees
  • Lucigen
  • They are successful without grants now
  • 10 companies awarded down to 5
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Sponsors

608-219-4183 todd.strother@uwex.edu

Successes and Influence

Conclusions:

  • We are pretty good a helping our clients get funding
  • Our clients appear to be twice as successful
  • But, the pipeline of applicant companies has stalled
  • And in some areas gone down
  • Here’s the plea:

Help us find, identify, and assist companies

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Sponsors

608-219-4183 todd.strother@uwex.edu

Examples of USDA Awardees

Freund’s Farm (Connecticut)

  • Solution to dairy farm manure
  • Cleaned and pressed into flower pots
  • Biodegradable
  • Provides fertilizer for young plants
  • ~$350,000 in SBIR funds
  • Featured on “Dirty Jobs”
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Sponsors

608-219-4183 todd.strother@uwex.edu

Examples of USDA Awardees

Eldertide (Maine)

  • Cultivated Elderberries
  • High in Antioxidants
  • Developed Juice drink
  • AnthoImmune™ Organic Elderberry Syrup
  • ~$480,000 in SBIR funds
  • Available at Whole Foods
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Sponsors

608-219-4183 todd.strother@uwex.edu

Examples of USDA Awardees

Wisconsin Companies

  • Whole Trees
  • Phyllotech
  • Northside Industries

Actively looking for others (other agencies too….NSF, NIH, DoD, DOE, etc.)

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Sponsors

608-219-4183 todd.strother@uwex.edu

  • Identify potential SBIR type companies
  • Learn criteria used to evaluate a fit for the

SBIR/STTR program

  • Summarize Wisconsin’s success with funding
  • Relate how the CTC assists companies

Outline and Objectives

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SLIDE 33

Sponsors

608-219-4183 todd.strother@uwex.edu

The CTC

From Feasibility to Funding

The Center for Technology Commercialization

  • Part of the UW-System
  • Services are no-cost to WI companies
  • Assist in preparing SBIR/STTR proposals
  • Business and Commercialization plans
  • Lean Startup methodologies
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Sponsors

608-219-4183 todd.strother@uwex.edu

CTC Introductions

Dave Linz, MBA, Co-Director

Idella Yamben, Ph.D., Business Development Consultant

Margaret Ramey, Outreach Specialist Todd Strother, Ph.D. Senior SBIR Consultant Bon Wikenheiser; CTC Co-Director

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Sponsors

608-219-4183 todd.strother@uwex.edu

The CTC Provides SBIR Assistance

  • Assisted over 1300 distinct

client companies

  • Helped almost $200

million in capital funds

  • Over $85 million in direct

SBIR funds

  • Increasing by about $15

million a year

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Sponsors

608-219-4183 todd.strother@uwex.edu

Consulting and Advice

Clients

  • Someone with just an idea
  • Established profitable companies
  • Typical : 2-5 people; <2 years old
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Sponsors

608-219-4183 todd.strother@uwex.edu

Consulting and Advice

Client Characteristics

  • Have a technology based idea
  • Need to do Research and Development
  • Looking for funds
  • Are unsure of SBIR’s; which agencies and

their fit for funding

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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR Assistance

  • 1500 topics across 11 agencies
  • Each with different deadlines, formats, focus
  • We help
  • Determine best fit agency and topic
  • Contact the program manager
  • Vet the idea
  • Executive summary to submission
  • Commercialization and Business Plans
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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR drafts and review

Review of the proposal

  • We review the drafts and

provide feedback

  • Editing, clarifications, formats
  • Budgets, biosketches,

budget justification, human research

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Sponsors

608-219-4183 todd.strother@uwex.edu

Commercialization Plans

Necessary for Phase II

  • Market Opportunity
  • Who is your customer?
  • Value of your product
  • Revenue stream
  • Pro forma statements
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Sponsors

608-219-4183 todd.strother@uwex.edu

CTC Programing

  • SBIR Ready
  • Micro-Grants
  • SBIR Presubmission Panel Reviews
  • SBIR Advance
  • Ideadvance
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Sponsors

608-219-4183 todd.strother@uwex.edu

  • Four session program

– learn business model concepts in SBIR framework – In depth writing workshops

  • Explore feasibility of their own idea

– Or an idea from a tech transfer office

  • Can earn up to $3000 towards business idea

SBIR Ready: Immersion for scientists

https://www.wisconsinsbir.org/SBIR-Ready

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Sponsors

608-219-4183 todd.strother@uwex.edu

Professional Network of SBIR writers

  • We maintain a list of profession grant writers

– Specialize in SBIRs – We vet them for quality

  • List of professional commercial plan writers

– Write business plans – Specialize in Phase II commercialization plans

  • Our clients contract with them for help

– They will charge you their fee – But….

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Sponsors

608-219-4183 todd.strother@uwex.edu Contact a CTC Consultant for more details.

Micro-Grants

Eligible Projects:

  • SBIR/STTR Phase I or II Proposal
  • Commercialization or Business

Plan CTC-approved Up to $4,500 per Micro-Grant Up to $9,000 per company Company allowed 1 each of SBIR project plan and Commercialization plan

Financial and administrative support provided by the Wisconsin Economic Development Corporation and UW–Extension

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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR drafts and review

Pre-Submission Review

  • Proposals evaluated by 3rd party reviewers
  • Scored, Strengths and Weaknesses
  • Ways to improve the proposal
  • Mimic Fed Review

– Overall Impact – Significance – Innovation – Investigator – Approach – Environment

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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR Advance

  • Matching Funds for SBIR grants

– $75,000 for Phase I – $150,000 for Phase II (over 2 years)

  • Activities not supported by SBIR funds

– Commercialization – Customer Validation (Lean Startup) – Pursuing IP protection – Market analysis – Some Technical work

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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR Advance Eligibility

  • Significant Wisconsin presence
  • Have an SBIR Phase I or Phase II underway

– If Phase I—intend on submitting a Phase II – If Phase II—have >6 months left on the project

  • No more than 2 Phase II’s awarded
  • Deadlines – August and January

http://www.wisconsinsbir.org/content/sbir-advance-matching-grant

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Sponsors

608-219-4183 todd.strother@uwex.edu

Ideadvance:

Seeds High Potential, Early Stage Ideas

  • Funding: $75,000 grant

– in all disciplines – focus on commercialization objectives

  • Application deadline in April

– Expect 5 awards

  • Education: Teach entrepreneurship

– Lean Startup methodologies

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Sponsors

608-219-4183 todd.strother@uwex.edu

Ideadvance Eligibility

  • Alumni, faculty, staff and students in UW

Systems (not Madison)

– 2- and 4-year campuses

  • License technologies from

– WiSys Technology Foundation – UW-Milwaukee Research Foundation – regardless of their current UW status

  • SBIR idea not necessary
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Sponsors

608-219-4183 todd.strother@uwex.edu

Networking

  • SBDC– business consultants
  • SBIR Grant Writers
  • Commercial/Business Plan Writers
  • Accountants
  • Regulatory Experts
  • Payroll specialists
  • UW Law & Entrepreneurship Clinic
  • Scientists, Statisticians, Engineers
  • Business Mentors

– Merlin Mentors – SCORE

  • Venture Capital/Angel Investors
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Sponsors

608-219-4183 todd.strother@uwex.edu

Goals:

  • We work with early stage companies

– Before they are ready for you? – But also work extensively with more developed companies

  • We are looking for referrals!

– Not just traditional ‘High-Tech’ – Manufacturing firms? – Engineering? – Agriculture?

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Sponsors

608-219-4183 todd.strother@uwex.edu

SBIR Workshop

Myths and Misconceptions of SBIR/STTR October 3rd, 2018 1:00 PM - 4 :00 PM Madison, WI

MG&E Innovation Center, 510 Charmany Drive

http://bit.ly/SBIRMyths www.wisconsinsbir.org