EDA Entrepreneurship Programming to Support Small Business Development in Illinois

Laura Frerichs, Director of EnterpriseWorks at the Research Park at the University of Illinois Urbana Champaign

Marissa Siero, EDA Project Coordinator & CEO of IntelliWheels

Wednesday May 17th, 2017

WLaura Frerichs, Director of the Research Park at the University of Illinois Urbana-Champaign

Marissa Siero, Project Coordinator the Research Park at the University of Illinois Urbana-Champaign

Welcome

• Entrepreneurial Landscape • EnterpriseWorks Technology Incubator• Illinois University Incubator Network • EDA University Center at EnterpriseWorks

Incubation & Entrepreneur Spaces

There are a proliferation of incubation and entrepreneurial space serving startups and small businesses.

NBIA categorizes incubators by the following five incubator types: • Academic institutions • Non-profit development corporations• For-profit property development ventures• Venture capital firms with space for portfolio companies• Combination of these

There are different ways to utilize these spaces based on the clients you serve and resources you have to support programming and real estate.

Incubator Types: Student Incubators

Student Incubators and Entrepreneurial dorms• Space for enrolled students to work on startup ideation, prototype products, and launch new

companies• Mentors, educational programs, weekend hackathons, competitions

Incubator Types: Biotech and Lab Space

Biotech and Lab Space Incubators for faculty and students commercializing research• Wet lab facilities for biotech, chemical sciences, engineering startups• Shared lab space: autoclave, centrifuges, lab ovens, - 80⁰ freezer, microscopes • Fume hoods, bio-safety cabinets, lab benches, glassware

Health, Technology and InnovationChicago Technology Park

Incubator Types: Maker Space

Maker Space for product prototyping, machining new devices, light manufacturing• 3D printing and additive manufacturing• Maker tools: saws, drill presses, lathes, circuit boards, laser cutting, machining, soldering and

welding equipment, sewing, microcomputers

Incubator Types: Tech and Co-Working Space

Digital Media, Software, IT companies, and early stage new virtual offices • Co-working space allows membership at a shared office space without dedicated offices• Shared conference rooms, amenities, mentoring services• Allows reduced early stage costs and learning environment with many peer companies• Estimated that 10,000 coworking spaces opened in 2016

Accelerator Programs

A startup accelerator program has the following 5 characteristics:1. A fixed-term, typically 3-6 months with working space included2. A seed investment in the startup, typically $100K and some equity

taken in the company3. A competitive application process for a cohort-based program4. Includes mentorship and educational components with a plethora of

networking opportunities, with both peer ventures and mentors, who might be successful entrepreneurs, program graduates, venture capitalists, angel investors, and corporate executives.

5. Culminates in a public pitch event or demo day

The number of American accelerators increased an average of 50 percent each year between 2008 and 2014, reaching 170 programs in 2014 and holding steady.

Accelerating growth: Startup accelerator programs in the United StatesBrookings Institution, February 17, 2016

Accelerator vs. Incubator Programs

University Location for Startups

Besides attracting high-achieving individuals, universities house students from multidisciplinary backgrounds and provide a means for such individuals to easily interact with each other due to proximity.

Universities are stepping up efforts to create “spinouts,” or business startups born from some of the cutting-edge research of their students or faculty.

EnterpriseWorks is a 43,000 sq ft startup business incubator in the Research Park for early stage tech firms. It is operated by the University of Illinois. Up to date it has successfully incubated more than 250 startups.

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Founders: Over half of our current client companies were founded by UIUC faculty members. 93% of our clients have founders affiliated with the university.

65%

2%

17%

9%7%

FacultyUI StaffUI StudentUI AlumniExternal

EnterpriseWorks Incubator

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6 67

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Energy Hardware AgTech Chemistry/Materials

Bio/Med Tech Software

EnterpriseWorks Client Technology Areas

Frequently Asked Questions about EnterpriseWorks

• 93% of incubator clients are affiliated with the university • The incubator graduates approximately 1/3 of its tenants annually • 11 graduates from the incubator are currently located in the

Research Park• Companies stay at EnterpriseWorks for 3-5 years (average)

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Incubator Graduate Locations

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2016 Startup Teams from UIUC

Significant cross-campus participation among startups in programs: 121 unique teams in at least one program entrepreneurship program

Entrepreneurship Program at UIUC 2016 Startup Participants

EnterpriseWorks 2016 Startup Tenants 58 active leases in 2016, 18 new in 2016

New UIUC OTM FY16 Startup Licenses 8 startups licenses

IPOC Proof-of-Concept Awards & Faculty Entrepreneur Fellows:

12 teams supported with funding

NSF I-Corps 2016 Teams at UIUC 34 teams participated in 2016

Cozad New Venture Competition 2016 120 student startups competed, 19 finalists, 13 awardees with prizes

IVenture Accelerator 2016 12 startups located at Research Park as summer cohort

I-Start Awards 16 active startups teams supported in 2016

AWARE Awarded Teams 2016 8 teams awarded

Illinois Ventures Portfolio Companies 13 active investments in UIUC startups

Venture Capital Raised by EnterpriseWorks

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Brookings Institute in 2015, March 6, 2015New names crack the top 20: Boulder; Ann Arbor, Mich.; Champaign-Urbana, Ill

EnterpriseWorks clients VC rounds in 2016:Agrible $4,100,000.00 Aptimmune Biologics $2,420,000.00 Cast21 $100,000.00 Inprentus $485,000.00 Prenosis $1,565,030.00 Reconstruct Inc. $850,000.00 Veriflow Systems $8,181,002.00

SBIR/STTR Awards at EnterpriseWorks

• Free SBIR/STTR Grant Consulting for Faculty/Students, private consultants through EnterpriseWorks provide technical assistance and training workshops

• Total Number Awards in State of Illinois in 2016: 98• Total from Research Park in 2016: 15• Champaign-Urbana awards: 27 (all local awards are

EnterpriseWorks graduates) 28% of total awards in Illinois

Soil DiagnosticsRithmioInnSight TechnologyPhotoniCareRational CyPhyAutonomic MaterialsAg-SensusCU Aerospace

OceanComm AE MachinesPetronics GlucosentientIllinoisRocstar Editekk Eden Park Illumination Starfire Industries

Entrepreneurs-in-Residence (EIR)

James Janega Chicago Ideas Week, Slalom, previously Chicago Tribune

Blue Sky Innovation

Tim HoerrSerra Ventures, Gameday

Sports, CPA, Valuation expert

Dennis BeardSerra Ventures & Open Prairie

Ventures, UI Business Adj. Faculty - Finance

Jed TaylorTEC, JLT Consulting and

Pattern Insight, Siebel Scholar

EIRs are local and regional experienced tech entrepreneurs who have commercialized technology, hired by the Research Park to consult startups

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Alan SingletonSingleton Law Firm, tech startups and IP

Lori PattersonPixo and CEO, former Accenture consultant

Craig VodnikCleverbridge Founder and VP Operations, Hyde Park Angels

Harlee SorkinMentor Management &

Common Place, Traco Labs Founder

Karin O’ConnorPerimeter Advisors, Hyde Park Angels

Rob SchultzSerra Ventures, ShareThis, Clearstream, Adrenaline,

Caterva, Spinlight, 640 Labs

Edwin MooreConsultant at BioPhia

Consulting, former Baxter scientist

Designer-in-Residence

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Dr. Deana McDonagh, Professor of the Industrial Design Program in the School of Art + Design as a Designer-in-Residence.

She, along with her students, assist University of Illinois inventors and entrepreneurs to incorporate product design in their technology development to help improve user experiences and performance of products to meet customer needs.

Intro to Customer Discovery: NSF I-CORPS

Stand in front of Class and

describe Business Model

Receive critical feedback from teaching team and

peers

Education from

teaching team

Validate hypothesis

with industry

Update business model

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University of Illinois is one of 63 US sites in NSF I-Corps

121 teams, launched in 2013, teams raised $26 Million

• UIUC is one of the leaders of the newly announced NSF Midwest I-Corps Node, along with University of Michigan and Purdue University.

• UIUC has the most teams from Illinois, $1 Million awarded to teams, and UIC is #3 with $309K. UofC is #2 with $547, Northwestern is #4 with $300K.

• AgCorps was hosted at the Research Park in June Team = Faculty + grad student + mentor

AWARE (Accelerating Women And underRepresented Entrepreneurs) offers resources and an enhanced infrastructure that make the current entrepreneurial ecosystem more accessible to all.

• Dedicated entrepreneur-in-residence familiar with the needs of underrepresented groups

• Small proof-of-concept grants for teams• Targeted mentorship, training and networking

opportunities

Karin O’Connor, EnterpriseWorks EIR

AWARE is a partnership between the College of Engineering, EnterpriseWorks and OTM, and is funded by the National Science Foundation.

Pilot program through NSF, first university location.

NSF AWARE Program for Women & Diversity

I-Start Program: Seed Accelerator Funds

• I-Start program helps support and launch new companies from the University of Illinois with professional services to move research toward commercialization.

• No equity is taken in the companies. • It is a matching award program that provides 80% of startup professional

service costs in the first year of a business. – Legal Services– Business Planning– SBIR Assistance– Financial and Payroll Services– Optional additional services: prototyping, branding,

immigration assistance, regulatory planning, crowdfunding • Startups are accepted on a competitive basis. • 61 companies have been accepted

– 44 SBIR/STTR awards to those companies– $78.7 Million in venture capital funding – 215:1 leveraged funding from EnterpriseWorks investment– 77% of companies moved into the incubator, 9 have graduated

Student Shared Services Program

• EnterpriseWorks student service team program to help entrepreneurs in the Research Park with project needs.

• Projects examples include: Market research, presentation development, business plan assistance, beginning a website presence, logo development, public relations assistance, user interface design, and lab setup service.

• All free for incubator clients.• There were 45 Shared Services projects in FY14

completed by 15 student interns: 18 websites, 13 logos, 11 marketing projects, 2 business reviews.

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EnterpriseWorks Incubator Space

C

Offices LabsFurnished office from 130-600 SF Labs available with casework, fume

hood, plumbing, gas, shelving.

Commons Area Coworking Space

Shared Lab Equipment

• Deionized water system• pH/mV/°C meters• Autoclave(s)• Glassware Washer• Analytical Scale• -80° C Laboratory Freezer• Isotemp Lab Refrigerators• Water baths• Ice Maker• Dry Ice mill• Dry Ice box • Savant SpeedVac concentrator• Rotary evaporator• Flow hood(s)• Reflow Oven• Thermo Box Furnace• Soldering Iron• Drill Press • MakerBot 3D Printer, Replicator 2X

Shimadzu VP series High Performance Liquid Chromatograph

Shimadzu Gas Chromatograph Waters micromass Quattro Micro LC-MS

with Alliance 2695 separation unit Waters micromass Q-TOF mass

spectrometer Bio Tek absorbance plate reader Cary 3E UV-Vis spectrophotometer with

temperature controller Gel documentation and imaging system Sorvall RC-5B Plus centrifuge Eppendorf benchtop refrigerated

centrifuge Eppendorf microcentrifuges New Brunswick G-25 incubator shaker PCR-Thermal cyclers (gradient) Track Pole Stand stereo Microscope

System

Access Campus Labs, Equipment, StoresCompanies can gain access to University of Illinois laboratory equipment and facilities by entering into Facilities Use Agreement and/or Technical Testing Agreements with the University

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Incubator clients are eligible to have indirect cost recovery rates waived, making facilities more affordable

Procurement available through the University for lab supplies at reduced

rates.

IVenture Accelerator Program

• Launched in Summer 2015, Illinois iVenture Accelerator allows top student startup teams to spend the summer on campus with the time and support they need build prototypes, create a value proposition, test demand, research the competitive landscape, validate market size, progress in developing their startup ventures.

• $2,500 stipend per Fellow and up to $10,000 in seed funding per startup• Mentors, workshops, and competition for additional funding• Co-working space at Research Park designed to maximize productive

collisions between Fellows and the broader community• 36 students and 13 startup companies

– 24 majors and minors represented

• Engaging with Chicago startup ecosystem: visits to 1871, Chicago Innovation Exchange, Matter, Chicago TechWeek

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Program 150 Events Annually

Social Interest Groups RecruitingFire at Five Prototyping Fair Career FairPi Day, May the Fourth Corporate Directors CS EventsTable Tennis Tournament Women in Tech RP Open HouseOutside at Research Park CEO Roundtables Quad Day

EducationData Science User GroupStartUp CaféSBIR Workshops

ConferencesBig Data SummitShare the VisionAgTech SummitPygmalion Hackathon

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EDA: Enabling Support Across Illinois

The University of Illinois, through Enterprise Works at the Research Park, is assisting incubators and the entrepreneurial ecosystems associated with higher education in 10 counties in Illinois, representing distressed regions in need of economic development assistance.

• Additional Higher Education Incubators in these counties my be added to the network.

Institutions and other incubators south of I-80 may join the EDA University Center Small Business Assistance Program. http://go.illinois.edu/SmallBusinessHelp

University Incubators in Illinois

Many universities and colleges in Illinois have entrepreneurial programs, courses, and support resources. However, the following universities have dedicated startup incubators:• Northwestern: The Garage• IIT: University Technology Park Incubator• Northern Illinois University: Eiger Lab• Bradley: Peoria Next• University of Chicago: Polsky Center• University of Illinois at Chicago: HTI• SIU Carbondale: Research Park• University of Illinois at Springfield: iSPI• University of Illinois at Urbana-Champaign: EnterpriseWorksAdditionally, there are universities seeking to start new incubator and innovation spaces throughout Illinois.

University Incubators in Illinois

Health, Technology and Innovation (HTI)Chicago Technology Park

Supported by the:

Economic Adjustment Assistance Grant

Economic Development Administration

The University of Illinois, through EnterpriseWorks at the Research Park, is assisting incubators and the entrepreneurial ecosystems associated with higher education in Illinois.

IUIN; Illinois University incubator networkThrough the IUIN, Enterprise Works will be fulfilling the following efforts:

1. Incubator assistance, sharing of resources, collection of best practices2. Ambassador visits3. Direct small business assistance services 4. Creation of a web portal to showcase the incubators5. White-label training templates for incubators in the network6. Referral of clients to the I-Corps program for training7. Development of incubator profiles, summaries about the higher education

incubator programs completed by UIUC Urban Planning which can be used as a reference guide

8. Incubator network conference to share best practices 9. Creation of the Illinois Alumni Mentor Network for university incubator

companies10. Startup showcase of higher education incubator startups from the participants,

invite investors and alumni participants

Sharing of Best Practices

Incubator assistance, sharing of resources, collection of best practices, exchange of information, ambassador visits:

• Conduct ambassador visits to each location

• Provides insight on best practices in working with entrepreneurs, as well as incubator management

• Review topics such as; operations, events, programming, marketing, and financials, as well as CRM tools, benchmarking, grant application development

Technical Assistance

Technical Assistance for university incubators and higher education incubator startups

• Business and technical assistance provided by University of Illinois students to support and encourage business growth

• Market research• Logo design• Website development

• SBIR resource provided to support incubator clients• Onsite free workshops at other universities• Free SBIR consultation with professional

experts

• Referral of clients to the NSF I-Corps program for training and micro-grants from Sites program.

Illinois Higher Education Incubator Website

Creation of a IUIN Website to showcase the incubators to provide additional communication tools;

• Profiles of the University incubators in Illinois • Repository for sample documents to share best

practices• Training Templates providing operational guidance for

incubators • News feed to support marketing and advocacy efforts• Contact information to enhance communication

between incubators, allow for referrals, identify and share regional knowledge or skillsets.

• Links to tenant directories, potential search of all university incubator tenants in Illinois

Illinois Higher Education Incubator Summit

Annual Illinois University Incubator Network Conference:

• Share best practices, presentations from higher education programs in entrepreneurship and incubation from across Illinois

• Network with peers and partners • Panels, keynote speakers, and hands on

workshops to promote ongoing dialogue and problem solving.

• Set priorities for shared resources and assistance for the network.

Chicago, Illini CenterJune 21, 2017

University Startup Showcase & Network

Annual Startup Showcase of higher education incubator startup clients

• Investors

• Alumni

• Government and Industry Participants

• Highlight startups from across incubators, successful funding rounds, SBIR awards, corporate partnerships

Creation of the Illinois Alumni Mentor Network for university incubator companies

EDA University Center Overview

The University of Illinois, through Enterprise Works at the University of Illinois Research Park, is assisting downstate IL small business (south of I-80) with technical assistance services to encourage business growth.

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign

What is the EDA University Center?

• The EDA University Center Grant supports small businesses located south of I-80.

• Communities seeking assistance in planning and developing entrepreneurship programs.

• Provides business and technical assistance provided by University of Illinois students.

• Entrepreneur in Residence resource to support incubator clients.

• Supports SBDC, PTAC, ITC, or higher education incubator clients

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign

EDA University Center Supported Services

• Business and technical assistance provided by University of Illinois students to support and encourage business growth.

• Project proposals will be run through a competitive selection process. Business and technical assistance will be provided based on fit and availability.

• All proposals must be submitted with or by a referral partner. Priority will be given to companies focusing on physical products or technical solutions.

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign

Step 1: Entrepreneurs / small business owners located south of I-80 meet with their local entrepreneurship partners such as the; SBDC, EDC, SBA, PTAC, ITCs, Higher Ed. Incubators, University of Illinois Extension Offices.

Step 2: Entrepreneurs / small business owners and their referral partner complete the University of Illinois EDA University Center Small Business Assistance Application online and submit to EnterpriseWorks.

Step 3: Enterprise Works will receive and review all applications. The project scope will be reviewed and University of Illinois student(s) will be matched with applicants based on availability and fit.

Step 4: University of Illinois student(s) will work with the entrepreneurs and small business owners to complete the requested business assistance to support business growth. All projects will have a hand-off at final completion.

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign

How to Access the University of Illinois EDA University Center Small Business Assistance Program ?

All requests for services will come from referrals from partners including incubators, SBDC programs, PTAC offices, ITCs, or higher education entrepreneurial programs.

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign

University of Illinois EDA University Center Project Examples:

• Market research based on journals, publications, patents, and competitive business intelligence.

• International market research

• Business plan review and editing (will not write business plans)

• Logo development

• Pitch presentation development and review based on business plan

• Graphics or formatting assistance for business presentation

• Website development; "brochure-like" format, can not be the product for the company, no on-going maintenance will be provided, all domain registration and hosting fees are at the company's expense.

• Packaging design assistance

• Trade show booth or point-of-sale product display design assistance

• Graphics assistance for marketing materials (content must already be created)

• Basic social media and online marketing strategy (i.e. use of Google AdWords, Facebook ads)

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign

University of Illinois EDA University Center Request Form

University of Illinois EDA University Center Request Form can be found at: http://go.illinois.edu/SmallBusinessHelp

Application Guidelines:• Please submit one request at a time.• Projects are short term with specific deliverables and a clear scope.• Projects must have a referral source; SBA, SBDC, PTAC, U of I Extension

Office, Higher Ed. Incubator.• Projects for physical product companies or technology companies will be

given priority.

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign

University of Illinois EDA University Center Expectations

• The University of Illinois EDA University Center program provides quality services at no cost to the entrepreneur, startup, or small business.

• The services will be completed by University of Illinois undergraduate or graduate students.

• All projects are expected to be completed within a 30 day window.

• The quality of the services provided are expected to meet the expectations of the Enterprise Works staff and the entrepreneur.

• The completed work will be at or above the level of an entry level employee in the expected field.

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign

Additional Information

• The link to the Shared Services Application can be found: http://go.illinois.edu/SmallBusinessHelp

• University of Illinois Urbana – Champaign Enterprise Works at Research Park

EDA University Center can be sent to: Marissa Siero

siebel2@illinois.edu217-300-2216

EDA University CenterEnterpriseWorks at Research Park

University of Illinois at Urbana-Champaign