Alto Douro Incubator (ADI) Raquel Sa: UTEN Austin Internship, Feb 2010

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

2. The Alto Douro Regional Model Academic Business Gov’t Community needs Talent Technology Capital Know-how National & International Market realities Job & Wealth Creation

3. Investments University NEW JOBS

4. ADI Two-fold Mission • To facilitate economic development through the support of entrepreneurship and new venture incubation • To provide opportunities for UTAD students and faculty to study new venture development in a life-scale, yet controlled (scientific laboratory) environment

5. Spin-Out Companies andthe Knowledge Technology Transfer Gap • Technology valuation/protection • Market research • Networking for financial support • Manufacturing access • Distribution, sales, and service • Managerial know-how: fast growth R&D Funding Application of R&D for firm: G A P • Government • University • Corporate • Diversification • Expansion • New formations Incubator Role

6. Benefits of Alto Duro Incubator Enhancecredibility TenantFirms Provideaccess to localbusinessnetworks Shortenlearningcurve Provide access to national/ international markets and resources

7. 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”

8. University Private Gov’t . Key Components of the Alto Douro Incubator Incubator Affiliation Faster to market & fast growth Tenant Companie s Profits Viable Companies Economic Development ADI (non-profit/profit) Entrepreneur’s Technology Job Creation Industrial Competitiveness Support Systems International Branding Capital Administration Know-How Networks Training & Education Facilities

9. ADI Value Proposition • Aggregate and channel value fromstakeholders for the benefit of member companies • UTAD research, faculty, students, and staff • Service providers, mentors, investors, and corporate partners • Return value tostakeholders • 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

10. Incubator Tenant Services

11. Community Incubator Services

12. 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

13. The ADI Commercialization Value Chain Capitalize Grow Alto Duro Incubator Technology Transfer Office Engage Market Investors Productize Innovate Research University

14. ADI within the UTAD Hierarchy (Raquel please review & change as needed Office of the Rector Research Faculty Business Faculty The University Office of Technology Transfer ADI Incubator CommercialSector

15. Incubation Process at ADI Vet Internally Screen Application Admit into ADI Set Milestones Review Graduate from ATI Vet Externally • Up to 3 years or: • When a major investment funding is obtained or • When significant cash from operations are achieved People Market Company pays ADI an annual membership fee Company donates equity to UTAD Technology

16. 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

17. The Value of a Business Incubator to Tenants Graduating Firms Accelerated Firm Growth

18. 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

19. 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

20. ADI: Potential Hi Tech Sectors Nano-Bio IT/Software Wireless ADI Digital Media Other… Clean Energy

21. Ten Success Factors Concise programmilestones withclear policies and procedures Access tofinancing andcapitalization On-site learning and leveraging of resources Tie to a university In-kindprofessional support ADI Communitysupport Selectionprocess fortenants Perceptionof success Entrepreneurialeducation Entrepreneurialnetworks: regional, national, international

22. 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

23. Critical Success Factors Advisory Board Academic Business Government Leaders/visionaries/champions The Director Nurturing/disciplined Networking skills Resourceful/adaptable/political Business experience

24. 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

25. 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

26. Incubator Start-up Task List 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

27. 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

28. 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

29. 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.

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

31. 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.