The Entrepreneurial Fellows Program -An experiment in Education

1. The Entrepreneurial Fellows Program-An experiment in Education Dr. Kenneth A. Pickar Stanley Johnson Professor Visiting Professor of Mechanical Engineering California Institute of Technology October 21, 2001 X4185, pickar@caltech.edu www.its.caltech.edu/~kpickar

2. The Caltech/ Art Center Entrepreneurial Fellows Program Environment Caltech- a small institution in Pasadena known for educating students in Science and Math Art Center- a small institution in Pasadena known for educating students in Design

3. The Caltech/ Art Center Entrepreneurial Fellows Program Many Caltech and Art Center students are interested in Entrepreneurship Started their own company Joined somebody else's Caltech and Art Center have considerable resource to assist these students Some Courses and Clubs Technology Transfer Office Industrial Relations Center Extensive networks in and outside region Tradition of Entrepreneurship

4. Candidate Solutions • “Just do it” • “Entrepreneurship cannot be taught; it has to be learned by making mistakes in the “real world” • Partially true but. . . • Get an MBA • Two years plus 2-3 years previous business experience • $$$ • Join a large company and attend training programs • Companies do not necessarily offer entrepreneurial programs • Self study • Huge library available but- where to begin? • More than book learning is required

5. The Caltech/ Art Center Entrepreneurial Fellows Program Then, what’s the problem? There exists a gap- a big gap- between a student’s business knowledge and what is required to start a company There is a cultural impedance mismatch between the academic culture of Caltech and Art Center and the business culture of the outside world

6. The Caltech/ Art Center Entrepreneurial Fellows Program To address this, we created the EFP last year a “boot camp” for intense education in business Characteristics 9 month Post-Grad Team Based Mentors Fellows receive stipend, business expenses No degree or certificate awarded

7. The Caltech/ Art Center Entrepreneurial Fellows Program • Experimental curriculum • Orchestrated practitioner/ instructors • Learn/Do • Integrated Caltech Courses • Charettes • Tech Coast Angel Meetings • Team building • Fellows act as TAs in Entrepreneurial Class

8. The Caltech/ Art Center Entrepreneurial Fellows Program Curriculum Learn/Do modules • Strategy and Leadership • Team Building • Communication and Presentation Skills • Marketing • Intellectual Property and Business Law • Finance and Accounting • Capital Acquisition • Human Resources • Product Design and Management of Technology

9. Organization and Process STEERING COMMITTEE Advice, Oversight LEARN/DO MODULES EDUCATION INDUSTRY EXPERTS / FUNDING COMMUNITY / NETWORKING MENTORING CALTECH TECHNOLOGY Investment TECHNICAL FEASIBILITY FORM FORM TEAM CALTECH/ART CENTER STUDENTS Write Proposal BUSINESS DEVELOPMENT PATH BUSINESS PLAN SELECTION PROCESS HOLD BUSINESS INSIGHT 9 MOS. FELLOWSHIP

10. The Caltech/ Art Center Entrepreneurial Fellows Program Bubble Imaging Technologies three-dimensional liquid motion technology for dynamic displays Centoid economic algorithms that will make the collection of small sums of money over the Internet extremely efficient KnowNet Internet communication system for forming "trust networks" Synthesized Animation real-time motion synthesis software for easier computer animation Teams chosen through a competition .

11. The Caltech/ Art Center Entrepreneurial Fellows Program Where are we now? The first group of Fellows will be ending at the end of March Celebration and Introspection We are in the selection process for the second group of Fellows Looking for business viability We are planning some changes for this next group

12. The Caltech/ Art Center Entrepreneurial Fellows Program What have we accomplished? Educational Mission Fulfilled Large network of Instructors vetted Major cultural issues resolved Model for second year

13. The Caltech/ Art Center Entrepreneurial Fellows Program Lessons Learned Affordability Should you pay entrepreneurs?

14. The Caltech/ Art Center Entrepreneurial Fellows Program Lessons Learned Organizational Too many (part-time cooks)

15. The Caltech/ Art Center Entrepreneurial Fellows Program Lessons Learned Big cultural issues need lots of time for resolution- what a surprise! Art Center/Caltech approaches differ Students are well. . . Students

16. The Caltech/ Art Center Entrepreneurial Fellows Program Lessons Learned Affordability issue Remedy: Pay less, reduce from 9 months to 6 months (Dis) Organizational issue Remedy: One Leader in charge Cultural Issues Remedy: Increased sensitivity

17. The Caltech/ Art Center Entrepreneurial Fellows Program Lessons Learned Student Application Process • Initial impact- widespread confusion • What’s a prototype business plan? • What’s a business plan? • What’s a business? • Expectations Delivery Capacity • Remedy: coaching and iteration

18. The Caltech/ Art Center Entrepreneurial Fellows Program Lessons Learned Expect “breakage” Teams Business approaches Increase structure- particularly expectations

19. The Caltech/ Art Center Entrepreneurial Fellows Program Acknowledgementsa case study in reverse leverage The Fellows Caltech Boris Axelrod, Eagle Jones, Fred Romberg,, Yasufumi Shiraishi, Serge Sverdlov, Robert Sneddon Art Center Matthew Carroll, Joey Jones, Dan Schenck

20. The Caltech/ Art Center Entrepreneurial Fellows Program Acknowledgements Sponsors – NSF, NCIIA, Mellon Ventures, Motorola Corporation, Intel, Microsoft, Convergent Ventures, ITU Ventures, Sienna Ventures, Mohr Davidow Ventures, California Technology Ventures, Gemstar

21. The Caltech/ Art Center Entrepreneurial Fellows Program Acknowledgements Steering Committee – David Baltimore, Richard Koshalek, Richard Murray, David Goodstein, Michael Dobry, John Ledyard, Ron Jernigan, Larry Gilbert, Abe Zerem, Puneet Newaskar, Rohit Shukla, Eric Dysart, Jonah Schnel, Larry Gilbert, Phil Weilerstein, Working Committee – Richard Murray, Michael Dobry, Tony Luna, Steve Diskin, Andy Davidson, Dan Frydman, Dean Schonfeld,Simon Niedenthal, Kit Baron Visiting Lecturers – Tony Luna, Kimberley Heart, David Zuckerman, Rich Wolf, Dan Frydman, Andy Davidson, Steve Diskin, Chris Halliwell, Patty Burke, Tim Bailey, Bob Michelet, Ken Deemer, Bill Davidow, Jim Brown, Dave Anderson, Brenda Laurel,William Deverell,John Glanville, Sara Hammes,Bill Jenkins,Mark DeFond, Bill Thomson Mentors – Jim Brown, Andy Davidson, Steve Diskin, Geoff Wardle Administrators – David Zuckerman, Peter Mendenhall, Renee Rottner, Elliott Andrews,Marionne Epalle,Kathryn Shaw,Grant Stafford, Amit Kenjale, Jin Park, Scott Payne Video documentary – La Mer Walker