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Overview of Tech Comm

Overview of Biomedical Commercialization Don Rose, Ph.D.
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Don Rose

on 10 November 2016

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Transcript of Overview of Tech Comm

Investment
Innovation
Start-up
Company
Product
Development
Product
Customer
Value
$
Competition
$$$$$
Fuel
University
Research
License
$
Management
Grants
$
Time
Skills
and
Talent
Sales
Patent Protection
How much protection (e.g. Int'l) depends on many factors

Licensing
Permits the company to commercialize the IP

Technology Development
NIH/NSF Grants
Coulter Foundation
Translation Grants (CTSA)
Overview of Technology Commercialization
Don Rose, Ph.D.
Director, KickStart Venture Services
University of North Carolina
U. S. A.
Biomedical
Innovation
Unmet
Need
Product
Opportunity
Unique
Capabilities
University Start-up Ecosystem
Keys to a Successful
University Startup

Focus, focus, focus
Single product
Addressing specific customer needs
In a defined market

Companies fail from indigestion, not starvation
People make the difference: Hire strong managment teams
Know what you don't know and hire those who complement you
Key Commercialization
Terms and Concepts

Barrier to Entry
Product Adoption
Sustainable
Competitive
Advantage
Business Model
Share ownership and control at the appropriate time
Think about owning less of a much more valuable pie
Be flexible: Don't fall in love with the technology
Industries, Markets, Customers
Technology
Development
Manufacturing
What to look for
Previous experience
Right skills at the right time
Personal compatibility
Excellent references
Common mistakes
Not "dating" long enough
Inappropriate titles
Not setting expectations
Wrong skills
Who
is the
customer?
Marketing: Creates the appeal
Sales: Closes the deal
Business Development
Many aspects of "marketing"
Recruiting management
Attracting investors
Engaging development partners
Appealing to early adopters
Selling to customers
Direct Competition
A similar product that solves the same problem
Zantac vs Tagamet

Indirect Competition
A different solution that solves the problem the same way
Manual vs Automated

Rookie Mistake
“There is no competition!”
Types of Competition
IP
Friends and Family
Personal Money
$10k to $25k
Seed Stage
Angels and Early VC
$50k to $250k
Series A,B,C
Venture Capital
$250k to $50M
Growth Capital
Public Markets (IPO)
$50M to $200M
Marketing
Simple case
Who is making the purchasing decision?
Who influences the "decision maker"?
Who uses the product?
User = Decision Maker?
Obstacles that inhibit new competition

A differentiation that competitors cannot easily replicate

Examples
Intellectual Property
Trade Secrets
Partnerships and Exclusive Contracts
Switching Costs
Location, Location, Location
Talent
Network or Critical Mass
Product attributes

Value proposition

Two types of differentiators
Delivering more value (faster, cheaper, better)
Delivering value differently
+
Key Differentiators
=
The Ideal
Technology-based
Product

Manufactured at a reasonable cost
Embodies the best attributes of the technology
Focuses on a specific application
Meets a specific customer need
Provides an economic benefit or value to the customer
Technical and market risks are low
Detects attomole amounts of phenylalanine
Purifies 100 L of cell culture
NO--these are features

Increases sensitivity 10X, enabling 100X reduction in waste
Reduces the process time 5 fold, saving $10,000 per run
Reduces patient hospital stay by 2 days
YES--these are benefits
Value Proposition
Know-how
Barriers to Adoption
Perceived Value
Perceived Risk
Inertia
Competition

Failing to Recognize Different/Changing Customers
Industry: Trade Level
Semiconductor Industry
Pharmaceutical Industry
Food and Beverage Industry
Aerospace Industry
Market: Similar Needs and Practices
IT Market
Cancer Market
Defense Market
Smartphone Market
Customers
Buyers
Users
Total Addressable
Market (TAM)
Revenue potential if all customers purchased your product
Describes the company's mechanism for creating and capturing value

Direct Sales
Razor and Razor Blades
Orginal Equipment Manufacturer (OEM)
Web-based
Subscription
Freemium
Partnering/Acqisition (not really a model)
The complexities of healthcare
Who orders the product?
Who reimburses for the product?
Who sets reimbursement rates?
Who values the product?
Salary
Equity
University and TTO
Adversary or Partner?
Cash is king: Use it wisely
Don't underestimate the value of
effective marketing early on
Two Kinds of Money
$$
Non-Dilutive
$$
Dilutive
Why do customer buy products?

Because it meets a need
Product provides economic benefit
People
University
Science
and
Technology

Money
Markets
and
Customers

$
Staging of Investments
Risk
Role of the University
(Grants)
(Investments)
Technology Commercialization Process
Value
Risk
FEATURES vs BENEFITS

Features
Detects attomole amounts of phenylalanine
Purifies 100 L of cell culture

Benefits
Increases sensitivity 10X, enabling 100X reduction in waste
Reduces the process time 5 fold, saving $10,000 per run
Reduces patient hospital stay by 2 days
Value Proposition
A statement of the value the product or service provides to the customer.
Value to the customer

Value to the investor
Layers of Value
Cool
Technology
...that solves a problem
...that someone cares about
...that a customer will pay to have solved
Why
Commercialize
University
Research?
University
Mission
Return on
Investment
Faculty Recruitment
and Retention
Economic
Development
Which Route to Commercialization?
How is university research commercialized?
Commercialized University Research Innovations
time
Questions?
Questions?
Technical Risk
Will it work?
Will it meet specifications?

Market Risk
Will the customer buy the product?
Will it out-compete the competition?
Operational Risk
Will the patents issue?
Are the right skills on board to execute?
Can sufficient capital be accessed for development?
University
Research

People
Publications
Products
Translation
of
University
Research

Technology
Commercialization
Working Definition
A technology or innovation with a unique, protectable capability embodied in a product for which there is a demonstrable market need.
The manufacture, sales, and distribution of that product in exchange for cash as part of a business enterprise.
Two Approaches to Commercializing University Research
Technology
Market
Need

Application
Derived from university research
Unique, enabling features
Ideally protected by patents

Technology applied to solve a problem
Significant number of customers with similar problems or unmet needs
Technology-based Product
with
Significant
Commercial
Potential
Identify unique features of the technology
Identify applications that fit technology features
What makes this technology different than any thing else?
What can you do with this technology?
Identify applications where customers have needs
Can anyone use this application to solve a problem?
Novel Science
Cool Technology
Innovative Idea
Unique, Enabling
Feature
Unique, Enabling
Feature
Unique, Enabling
Feature
Application
Application
Application
Application
Application
Application
Novel Science
Cool Technology
Innovative Idea
Unique, Enabling
Feature
Unique, Enabling
Feature
Unique, Enabling
Feature
Application
Novel
Hydrogel
Contracts in response to magnetic field
Externally
controllable
drug delivery
Dissolves at low pH
Time-release
drug
formulation
Absorbs 10x its weight in metal ions
Bioremediation
Heart
Disease
Therapy
Agonist enhances vascular growth
Inhibition reduces vascular growth
Up-regulated in stroke model
Diagnostic
Test
Cancer
Therapy
Angiogenesis
Factor
Detects trace amounts of gases
Polymer-
coated
Sensor
CO sensor for home use
Wearable sensor for military
Indoor air pollution sensor for the workplace
Technology Push
Identify a significant customer need
Identify or develop technologies that meet that need
Develop a product that embodies the technology that meets the customer need
Market Pull
Biomedical researchers + Physicians
Biomedical engineers + Surgeons
University Professors + Industrial Collaborators
Business
Students
Tech
Transfer
Office
Univ
Professors
Ts
Technology Commercialization Process
Product Opportunity
Technology Development
Scientific Research
Product Development
Manufacturing
Sales and Marketing
Distribution
Intellectual
Property
Protection
Prototyping
Proof-of-concept testing
Validation studies
Non-Hypothesis-Driven
Research
Startup Company
or
Established Company
Commercialization
Options
Disruptive Innovations
Platform Technologies
Tacit Knowledge
Strong Intellectual Property Position
Incremental innovations that
Align with current business/customers
Enhance current products
Leverages company manufacturing/sales/distribution
Provide low risk for product development
Established companies seek...
Startups are built around...
Customer and
Market Need
Customer Discovery Process
(adapted from "Four Steps to Epiphany" by Steve Blank)
State the
Problem Hypothesis
Test
the
Problem
Hypothesis
Test
the
Product
Concept
Verify


Modify


Iterate
The Entrepreneurial Mindset
Full transcript