robotics: entrepreneurial opportunity? -...
TRANSCRIPT
3/6/2015
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Catalyst for Entrepreneurial Innovation
Robotics:
Entrepreneurial Opportunity?
IEEE RoboResearch Seminar 6 Mar 2015
Paul Wetenhall
Ventureprise, Inc.
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• Twin Pillars: Innovators & Entrepreneurs
• Entrepreneurial Best Practices
• Venture Financing including Robotics
• Resources
• Your Questions
Topics
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Start-up Job Creation Decline
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Year
Jobs Created by Establishments less than one year old
Source: U.S. Bureau of Labor Statistics
Gap 1.5 mil
jobs
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The Big Picture
Innovation vital to our economic strength
Disruptive innovation increases productivity and standard of living
Startup companies disrupt…
creative destruction
Startup companies drive U.S. job growth
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Economic Impact
• Each new high-tech job leads to five additional
jobs in local services (lawyers, nurses, plumbers)
• Innovation sector multiplier is 3X manufacturing
multiplier
Source: Enrico Moretti, The New Geography of Jobs
Innovation-driven Enterprises (IDE) • National and global markets
• Innovation as core competitive advantage: tech, process, business model
• Initial losses followed by rapid growth…or failure
• Often require external equity capital
Catalyst for Entrepreneurial Innovation
Innovators & Entrepreneurs
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Innovation Defined
the act of introducing something new:
something newly introduced The American Heritage Dictionary
an innovation is a value-creation mechanism Lawrence Husick
change that creates a new dimension of
performance Peter Drucker
• Disruptive Characteristics – Cheaper
– Simpler
– Smaller
– More convenient
• Examples – Cell Phone & Skype vs. Land Line Phone
– Netflix vs. Blockbuster
– Apple products generally
– Nucor minimill vs. US Steel
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Disruptive Innovation
Source: Clayton Christensen
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Opportunity Continuum
Idea Invention Innovation Opportunity
Technical Feasibility ?
Customer Acceptance ? ?
Business Model ? ? ?
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Who Is The Entrepreneur?
Source: Timmons and Spinelli
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Creative Destruction
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Customer Discovery…
Charlotte Venture Launch
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Lessons
• Business models more important than inventions – Edison electric light patent rejection
– Edison enabled electricity to be sold like gas, a utility
• Connecting, not inventing – Autos available two decades before Ford Model T
– Mass production; Ford “I invented nothing new. I simply assembled into a car the discoveries of other men…”
• Innovation in action – Watt’s steam engine invention in 1762; but steam engines had
been used in coal mines for 70+ years
– Impact when entrepreneurs worked with the technology
Source: Andrew Hargadon, Kauffman Foundation
Catalyst for Entrepreneurial Innovation
Financing
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Equity Sources
1. Founders, Family & Friends
2. Angels
3. Venture Capitalists
4. Strategic Partners
5. Public Equity Market
Don’t forget…
• SBIR, STTR, ATP, other government
• NC IDEA, Charlotte Venture Challenge, etc.
Stages of Company Development
< $1M $2 - $3M $3M - $10M $10 - $20M--
Typical Pre-
Money
Valuations
< $1M $2 - $3M $3M - $10M $10 - $20M--
Typical Pre-
Money
Valuations
Develop idea
into working
prototype
Develop beta
products; trial
customers
Launch product
sales to paying
customers
Expansion
through $XXM
revenue targets
IdeaMilestonesDevelop idea
into working
prototype
Develop beta
products; trial
customers
Launch product
sales to paying
customers
Expansion
through $XXM
revenue targets
IdeaMilestones
Pre-Seed SeedEarly
Stage
Later
StageConceptCompany
StageA-Round, B-Round, C-Round
Pre-Seed SeedEarly
Stage
Later
StageConceptCompany
Stage
Pre-Seed SeedEarly
Stage
Later
StageConceptCompany
StageA-Round, B-Round, C-Round
<$100K $250K - $1M $1M - $5M > $5M--
Typical
Funding
Amounts
<$100K $250K - $1M $1M - $5M > $5M--
Typical
Funding
Amounts
Venture Capital & Strategic Investor Founders, Friends, Grants
Angel Capital & Quasi Public
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Venture Capital: Seed & Early
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Robotics Venture Capital
$millions 2011 2012 2013 2014
Deals 14 24 19 27
Investment $ $160 $220 $250 $341
$ Per Deal $12 $9 $13 $13
• First VC fund dedicated to robotics, Grishin Robotics, appeared in 2012 • Medrobotics raised $113M with four annual rounds • Largest 2014 deal Anki Drive at $55M ($100M+ to-date) • 2014: 6 drone deals; 4 medical robot deals • High valuation exits: Mako Surgical $1.6B, Kiva $775M, MakerBot $600M • But, modest market caps limit sector appeal: iRobot $1B
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Thinking of a Startup?
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Ventureprise
• Hybrid University & Charlotte Community – University home and funding
– Community governance and engagement
• Serve multiple communities – Academic researchers and students
– Innovation-driven entrepreneurs
– Regional innovation ecosystem
• PORTAL building: where student, faculty, entrepreneur,
and corporate talent collaborate – Charlotte Research Institute: corporate
– Ventureprise: entrepreneurs
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UNC Charlotte
Commercialization
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Commercialization Awareness [Tech Transfer, Ventureprise]
Invention Disclosure and IP Protection [Tech Transfer]
Customer Discovery & Business Model [Ventureprise]
Business Start-up and Growth [Ventureprise, SBTDC]
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Robotics:
Entrepreneurial Opportunity?
• Investors don’t usually fund research
• Thus… – Research via grants
– Capital efficient business models
– Niche focus
– Strategic partners
• What do you think?
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A Final Word!
Make Something People Want
Paul Graham
Veteran entrepreneur and founder of Y Combinator
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Questions?
Topic Contact
49er Foundry & Charlotte Venture Challenge
Devin Collins [email protected]
Ventureprise Paul Wetenhall [email protected]
Ventureprise, Inc. 704 697-0900
www.ventureprise.org