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BATTEN INSTITUTE for Entrepreneurship and InnovationAnnual Report 2013–14

INSPIREDEDUCATION

TRANSFORMATIVERESEARCH

ENERGIZEDCOMMUNITY

BATTEN INSTITUTE

ANNUAL REPORT2013–14

Frank Batten, Sr., visionary co-founder of the Weather Channel, challenged Darden to achieve something extraordinary: “to become a preeminent educator and thought leader of entrepreneurship and innovation.” As we reflect on the 2014 academic year, we have surely made great strides toward fulfilling his bold vision and strengthening Darden’s foundation for the future.

Darden is now widely recognized for having one of the best entrepre-neurship programs in the world, rated consistently among the top 10 and ranked No. 5 this year alone (Entrepreneur Magazine/Princ-eton Review). Moreover, we have assembled a collection of the finest scholars, educators, fellows, and professionals, whose research and knowledge are at the cutting-edge of entrepreneurship and innovation.

This year also marked an important inflection point for Darden’s business incubator. Housed in the newly expanded W.L. Lyons Brown III i.Lab, the 2013–14 program supported the largest cohort of new ventures in Darden’s history: 25 ventures this year alone! In addition, by opening the program to aspiring entrepreneurs from the wider community, Darden made its most significant effort to elevate the entrepreneurial ecosystem at U.Va. and beyond.

These achievements and many others are presented in this annual report, and we hope you enjoy perusing its pages. We also hope the report demonstrates the innumerable ways in which the Batten Institute serves as a powerful catalyst for developing entrepreneurial, global, and responsible leaders who step forward to improve the world.

As we look to the future, we remain inspired by Frank Batten’s vision, and we will continue to extend our programs to promote inspired education, generate transformative research, and foster an energized community of entrepreneurs and innovators. We welcome you to join us on this exciting journey!

Sincerely,

Sean D. Carr

Executive DirectorBatten Institute for Entrepreneurship & Innovation

Assistant Professor of Business AdministrationDarden School of Business

Sean D. Carr

Michael Lenox

Michael Lenox

Associate Dean and Academic DirectorBatten Institute for Entrepreneurship & Innovation

Samuel L. Slover Professor of BusinessDarden School of Business

Welcome

The Batten Institute serves as a powerful catalyst for

developing entrepreneurial, global, and responsible

leaders who step forward to improve the world.

BATTEN INST ITUTE ANNUAL REPORT 2014 3

Mission & Table of Contents

By the Numbers

At a Glance

Inspired EducationCourses

Online Offerings

Scholarships

Workshops

Internships

Competitions

In Focus: W.L. Lyons Brown III i.Lab at the

University of Virginia

Transformative ResearchFaculty

Fellows

Research Grants

Research Conference

Publications & Honors

Milstein Symposium

Innovators’ Roundtable

Journal of Business Venturing

In Focus: Solving Problems with Design

Thinking

Energized CommunityE-Conference

Student Clubs

Alumni Startup Workspaces

iDEA Network

U.Va. and Regional Ecosystem

Virtual Communities

Media

In Focus: Darden–1776 Partnership Taps the

D.C. Start-up Scene

Financial Statements

FY 2013–14 Budget

Leadership

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The Batten Institute serves as a catalyst for developing and inspiring responsible entrepreneurial leaders and for advancing knowledge about the transformative power of entrepreneurship and innovation.*

To fulfill this mission we pursue three high-impact objectives that serve the Darden School of Business, the University of Virginia, and the broader entrepreneurial ecosystem:

Inspired EducationCultivate the next generation of entrepreneurial leaders through rigorous academic and experien-tial programs

Transformative ResearchGenerate thought leadership in entrepreneurship and innovation through research projects of consequence to business and society

Energized CommunityFoster a diverse and collaborative community of scholars, students, alumni and practitioners engaged in the study and pursuit of entrepre-neurship and innovation

*Aligned with the broader mission statement of the Darden School of Business: “The Darden School improves the world by developing and inspiring responsible leaders and by advancing knowledge.”

The Batten Institute was created in 2000 through the visionary support of Frank Batten, Sr. (Col ’50), former chairman and CEO of Landmark Communica-tions and co-founder of the Weather Channel, along with his children, Frank Batten, Jr. (MBA ’84) and Dorothy Neal Batten (MBA ’90). Previously known as the Batten Center for Entrepreneurial Leadership, the Batten Institute was charged with a mandate to challenge and enable Darden to be a preeminent educator and thought leader.

Today, the Batten Institute encompasses a world-class research center, focused on academic scholar-ship, as well as Darden’s Center for Entrepreneurial Leadership and W.L. Lyons Brown III i.Lab at the University of Virginia, focused on student programs and the growth of our entrepreneurial ecosystem. The activities and initiatives supported by these complementary units bring together scholars, students, alumni and business leaders, fostering a diverse and energetic community that supports the Institute’s mission to create knowledge and improve society.

Frank Batten, Sr. (1927–2009)

History

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$1M

No. 5

$90k25

3721

New ventures in the i.Lab

Full-tuition MBA scholarships

Internships with startups and VCs Rank for entrepreneurship (2014)

MBA courses in entrepreneurship & innovation

Prizes for entrepreneurial competitions

By the Numbers 2013–14

EIGHT

15$175,000

70%

6$1.4MILLION

MBAs enrolled in entrepreneurship & innovation courses

Research grants

Entrepreneurs-in- residence Sponsored faculty

Corporate sponsors

Books, articles, papers, cases


Venture Capital BootcampJanuary 2014 —

More on page 15

1776 Partnership Launch (D.C.)March 2014 —

More on page 35 & 38

Darden-Cambridge (U.K.)Research ConferenceJune 2014 —

More on page 26

Effectual De-Risking CompetitionFebruary 2014 —

More on page 16

Darden Business Plan 2.0 CompetitionApril 2014 —

More on page 16

Innovators’ RoundtableApril 2014 —

More on page 29

January February March April May June

Entrepreneurial Law ClinicMarch 2014 —

More on page 21

At a Glance 2013–14

Batten Venture Internship ProgramJune–August 2013—

More on page 15

U.Va. Entrepreneurship Cup WorkshopsSeptember–October 2013—

More on page 15

U.Va. Entrepreneurship Cup November 2013—

More on page 16

E-Conference: Startup NowNovember 2013 —

More on page 34

Design Thinking for Business Innovation WorkshopNovember–December 2013 —

More on page 15

U.Va. Tech Venture FairNovember 2013

June July August September October November December2013 2014


Our philosophy is that “entrepreneurship” is about more than starting a new venture; it is a way of thinking and a set of skills for creating enduring value. To that end, the Batten Institute supports a broad portfolio of educational programs intended to support and inspire the next generation of entrepreneurial leaders at Darden.

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CoursesOnline OfferingsScholarshipsWorkshopsInternshipsCompetitionsInFocus: W.L. Lyons Brown III i.Lab at the University of Virginia

INSPIREDEDUCATION


Online Offerings

Platform:

Jeanne Liedtka Design Thinking for Business InnovationDates: Nov-Dec 2013Duration: 5 weeksRegistrants: 74,891

Edward Hess Grow to Greatness: Part 1 Dates: Jan-Feb 2014 Duration: 5 weeks Registrants: 49,081

Grow to Greatness: Part 2Dates: Mar-Apr 2014Duration: 5 weeksRegistrants: 28,831

Michael Lenox Foundations of Business StrategyDates: Sept-Oct 2013Duration: 6 weeksRegistrants: 78,061

Dates: Jan-Mar 2014Duration: 6 weeksRegistrants: 75,034

Dates: Jun-Jul 2014Duration: 6 weeksRegistrants: 49,604

Fall 2013 Course Offerings GBUS 7609 Entrepreneurial ThinkingGBUS 7613 Sustainability, Innovation and EntrepreneurshipGBUS 8060 Sustainable Innovation and EntrepreneurshipGBUS 8070 Sustainability in Depth: Studies in InnovationGBUS 8210 Starting New VenturesGBUS 8290 Venture CapitalGBUS 8301 Emerging Information Technologies SeminarGBUS 8404 Innovating and Integrating in ServicesGBUS 8435 Emerging Medical Technologies GBUS 8447 Innovation and Product DevelopmentGBUS 8453 Entrepreneurial Finance and Private EquityGBUS 8459 Innovation and Design ExperienceGBUS 8478 Markets in Human HopeGBUS 8618 Technology EntrepreneurshipGBUS 8700 Darden Venturing ProjectGBUS 8840 Leading InnovationGBUS 9330 Seminar in Entrepreneurship IGBUS 9350 Reading Seminar in Entrepreneurship III

Spring 2014 Course Offerings 7108 Innovation, Entrepreneurship and Growth7609 Entrepreneurial Thinking7613 Sustainability, Innovation and Entrepreneurship7614 The Adrenaline Innovation Project7615 Develop an Entrepreneur’s Mindset7618 Effectual Entrepreneurship8060 Sustainable Innovation and Entrepreneurship8070 Sustainability in Depth: Studies in Innovation8210 Starting New Ventures8230 Growing the Smaller Enterprise8306 Social Responsibility and Entrepreneurship8427 Entrepreneur as Change Agent8439 Leadership and Cultures of Trust & Innovation8454 Small Enterprise Finance8459 Innovation and Design Experience8469 Entrepreneurs Taking Action8485 Markets in Human Hope8487 Corporate Innovation & Design Experience8488 Global Innovation and Technology Commercialization8612 Managing Innovation and Product Development8700 Darden Venturing Project8840 Leading Innovation

Darden offers nearly 40 electives in the areas of entrepreneurship and innovation, which are taken by nearly three-quarters of all Darden MBAs.

Courses

Darden offers

37 entrepreneurship & innovation electives

Many of Darden’s online courses boast over

75,000 registrants

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U.Va. Entrepreneurship Cup Workshops Presented by the Batten Institute in partnership with U.Va. InnovationLocation: U.Va. Innovation, Open Grounds

Ideation and Team BuildingInstructor: Philippe Sommer, Darden10 September 2013

Telling and Selling Your StoryInstructor: Kate Burke, Drama17 September 2013

Protecting Your IdeaInstructor: Michael Straightiff, U.Va. Innovation24 September 2013

Anatomy of a PitchInstructor: David Touve, Mcintire1 October 2013

Apex Clean Energy, Inc.ArqspinAyuKurulushBessemer Venture PartnersCaribe Juice LLCCavionEntytle, Inc.GNIPHungry Flatts Vineyards & Distillery

The Batten Institute subsidizes summer internships for Darden students interested in working with a startup or a venture capital firm through the Batten Venture Internship Program. In 2014, 21 students were supported through this program with internships at the following ventures:

KiraKiraMobileWorksNew City CapitalProject CavalierPsiKick RealMySirin Mobile TechnologiesSoapBoxSupreme EnergyVinConnectWillowTree Apps, Inc.

Workshops

Internships

Design Thinking for Business Innovation (Coursera Q&A) Instructor: Jeanne LiedtkaLocation: W.L. Lyons III i.Lab at U.Va.11 November–9 December 2013

Venture Capital Bootcamp Instructors: Tim Meyers of Baker Tilly, John May of New Vantage GroupLocation: Cooley Godward, LLP, Reston VA9–11 January 2014

Each year the Batten Institute provides more than $1 million to support scholarships for MBA students who have an entrepreneurial or innovative orientation. In 2013-14, 10 full scholarships were awarded to members of the Class of 2015. Here are a few examples of Darden’s entrepreneurial talent:

Rachel Penny MBA ’15 Vancouver, WA

Founder: Escape Estates d/b/a Cassimir Club (high-end vacation rental community)

“I was fortunate to spend my summer in Charlottesville as a member of the i.Lab between my first and second year, starting my own venture, Cassimir Club. With the experience gained from Darden and the i.Lab, I am looking forward to staying in Charlottes-ville to pursue the growth of my company.”

Zach MayoMBA ’15 Chattanooga, TN

Co-founder: RelishMBA (web-based MBA recruiting platform)

“I joined the i.Lab Incubator in 2014 as part of the RelishMBA team. Along with co-founder, Sarah Rumbaugh (MBA ’15), we are in the process of raising capital to fund expansion of a web-based MBA recruiting plat-form and are planning to continue full-time work on the business after graduation.”

Rafe Steinhauer MBA, M.Ed. ’15 Chappaqua, NY

“I am helping an organization develop a five-week program in Amsterdam. When you put together a passionate and diverse group of people, provide a little coaching, and ask, ‘What should school for adults be?’ we can co-create experiences of personal meaning, impact and fun.”

Scholarships

Without the Batten scholarship, I would not have had the confidence or financial flexibility to pursue something of interest to me immediately upon graduation. Darden, and the scholarship by extension, have had a huge impact on my life, and will continue to do so.

—Rafe Steinhauer, MBA, M.Ed. ’15

Darden allocates more than

$1M to MBA scholarships

annually

10total number of new

scholarships awardedin 2013–14

21total number of internships supported

in 2013-14


Darden Business Plan 2.0 Competition 17 April 2014

Open to all U.Va. students, this competition features student pitches that demonstrate the value of the business, capturing the elements of a business plan in a high-impact PowerPoint, video and executive summary-based format; $20,000 awarded in total, $10,000 for first prize.

Strategic Competition Initiative The Batten Institute provides funding to sponsor student teams participating in strategic competitions in the areas of global leadership, entrepreneurship and innovation, sustainability, ethics, and diversity. In 2013–14, Darden teams participated in the following events around the country:

1 VOTER’S CHOICE Tara Raj and Garrett Allen (COM ’16)

LAMARCA Sarah Sanchez (MBA ’14) Anika Brown (MBA ’14)

RelishMBA (tied) Sarah Rumbaugh (MBA ’15), Zach Mayo (MBA ’15)

The Wire ($500) Annie Medaglia (MBA ’15)

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Winners

Venture Capital Investment Competition College Park, Maryland Ross Rosenstein (JD/MBA ’16), Ryan Conner (JD ’13) SXSW Business Plan Competition Austin, Texas Monte Jones (MBA ’14)

Charlotte Venture Challenge Charlotte, North Carolina • RelishMBA, Sarah Rumbaugh (MBA ’15); • PhoodE, Alex Becker (MBA ’14) • LAMARCA, Anika Brown (DMBA ’14), Sarah Sanchez (MBA ’14)

Baylor New Ventures Competition Waco, Texas • LAMARCA, Anika Brown (MBA ’14), Sarah Sanchez (MBA ’14) • ProVazo, Peter Neems (MBA ’14)

With over $90,000 in entrepreneurial funds awarded annually, Darden provides MBA students multiple opportunities to pitch their business ideas to investors, peers, faculty, alumni, business leaders, and the broader U.Va. entrepreneurial ecosystem.

Competitions

U.Va. Entrepreneurship Cup

22 November 2013 Location: Nau Hall, University of Virginia

University-wide business concept competition with $40,000 awarded in total, $20,000 for first prize. Tracks include: Consumer Goods and Services/B2B; Medical Technologies and Health care; Social Entrepreneur-ship; and Technology, Media and Communications.

Effectual De-Risking Competition 18 February 2014Location: Darden School of Business Based on the principles of effectuation, this event teaches students to develop business concepts with self-selected stakeholders while reducing the risks associated with launching their new business; $5,000 awarded in total, $3,000 for first prize.

1 Chitenges 4 Change(reusable and hygienic sanitary pads)Batten School for Leadership and Public Policy

Notivibe(hand-washing compliance system)School of Engineering and Applied Science

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LAMARCA(crowdfunded, premium fashion platform)Darden School of Business

MiniCell Therapeutics(modular chassis for drug delivery, environmental remediation and vaccine development)U.Va. Health System

Honorable Mention

Winners

1 RealMy(online real-estate brokerage)Tom Barbour (MBA ’15)

RelishMBA (MBA networking platform) Sarah Rumbaugh (MBA ’15), Zach Mayo (MBA ’15)

Escape Estates d/b/a Cassimir Club (high-end vacation rental community) Rachel Penny (MBA ’15)

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Darden awards more than

$90,000 in entrepreneurial funds every year


W.L. Lyons Brown III (U.Va. ’82, Darden ’87) is the founder and chief executive officer at Altamar Brands, LLC, a distiller and importer of rare, craft spirits. Previously he spent 15 years in his family business at Brown-Forman (Jack Daniel’s, Southern Comfort), where he was marketing director for Europe and director of sales for the United States before retiring to pursue entrepreneurship. He is a trustee of the Darden School Foundation and a member of the advisory board for Darden’s Batten Institute for Entrepreneurship and Innovation. He is also an Entrepreneur-in-Residence for the i.Lab at U.Va. and at the A.B. Freeman School of Business at Tulane University, where he teaches cases annually.

The W.L. Lyons Brown III i.Lab provides a nexus for entre-preneurship education and venture creation. Its mission is to foster high-impact collaboration across disciplines, schools and ways of thinking. The i.Lab’s programs offer coaching, courses, and incubation for students, faculty, and local community members. The i.Lab was first launched by the Batten Institute in 2010 and later expanded substantially in 2013 through the enthusiastic support of W. L. Lyons Brown III and other generous spon-sors. The i.Lab is located at the Darden School of Business and is operated by Darden’s Batten Institute.

W.L. Lyons Brown III i.Lab at the University of Virginia

INFOCUS

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Entrepreneurs-in-ResidenceIn 2014 the Batten Institute inaugurated the Entrepreneur-in-Residence program, which offers seasoned entrepreneurs and other professionals an opportunity to provide mentoring and counseling to entrepreneurial students and participants in the i.Lab Incubator program. We are deeply grateful to the following EIRs who volunteered countless hours and their prodigious talent to supporting our entre-preneurial community:

Entrepreneurial Law ClinicU.Va. Law students, under the supervision of a course instructor and supervisor, work with i.Lab entrepreneurs who are starting new companies. The law students take a lead role in working with the entrepreneurs, including conducting interviews, performing research, providing a legal plan for each business, identifying documents to be drafted and drafting documents.

i.Lab Faculty Advisory CouncilThe i.Lab has an advisory council comprised of faculty from 11 schools at U.Va. and the office of U.Va. Innovation. The FAC provides counsel for all the programs and activities that could leverage the i.Lab for the benefit of the University’s entre-preneurial ecosystem. In 2013–14, the i.Lab FAC included:

W. L. Lyons Brown III Senior Entrepreneur-in-Residence

Frederick Kulow, Jr. Senior Entrepreneur-in-Residence

Evan Edwards Entrepreneur-in-Residence

John Stacey Entrepreneur-in-Residence

Dana Goldsmith Entrepreneur-in-Residence

Anselmo Canfora, Associate Professor, School of Architecture

W. Bernard Carlson, Professor and Chair, Engineering & Society, School of Engineering & Applied Science (i.Lab FAC Chair)

Donna Klepper, Director of Regional Outreach, School of Continuing & Professional Studies

Lianne Landers, U.Va. Innovation, Office of the Vice President for Research

John Lazo, Professor and Associate Dean for Basic Research, School of Medicine

Michael Lenox, Professor and Associate Dean, Innovation Programs, Darden School of Business

Christine Mahoney, Assistant Professor of Public Policy & Politics, Batten School of Leadership & Public Policy

Karen Rose, Associate Professor of Nursing, School of Nursing

Leonard Schoppa, Associate Dean for Social Sciences, College of Arts & Sciences

Justin Thompson, Director of Innovations & Outreach, Curry School of Education

David Touve, Assistant Professor and Director, Galant Center for Entrepreneurship, McIntire School of Commerce

Andrew Vollmer, Professor and Director, John W. Glynn, Jr. Law & Business Program, School of Law

Robert Tobey Entrepreneur-in-Residence

Adapdif (instructional technology platform) Mindy Morgan (Curry Ph.D. ’15), Caner Uguz (Curry Ph.D. ’14)

Branch Basics (nontoxic soaps and cleaners) Kelly Love, community

Coverplay Audio (products to enhance tablet listening experience) David Marriott (MBA ’14)

Elegant Solutions (product development firm) Michael Michon (SEAS ’12), Adarsh Ramakrishman (SEAS ’12)

Foodio (restaurant ordering app) Rory Stolzenberg (U.Va. ’13), D.J. Collier (U.Va. ’13)

Frogmen Logistics (crude oil trucking company) Stefan Bozik (MBA ’14)

Smorgus (online discussion platform) Matt McCauley (MBA ’14)

Tom Tom Founders Festival (innovation and ideas festival) Paul Beyer, community

Valto Grill (wood-fired grills) Alex Leff, community

Wolfie’s Way (Angie’s List for dog owners): Catherine Tarasoff (MBA ’13)

XMT Solutions d/b/a Mobell Muscle (mobile barbell system) Michael Humenansky (MBA ’14, Ross Rosenstein(JD/MBA ’16)

YOLOCALS (local experiences platform) Kenny Schulman (MBA ’14)

INFOCUS

i.Lab IncubatorThe i.Lab is home to the largest incubator program in Darden’s history. In 2014 the Incubator supported 25 ventures, including seven from the wider community. The program continues to evolve, offering workshops, speakers, pitch nights and other activities that enrich the Darden ecosystem. More than 40 percent of ventures incubated at Darden remain in business five years out, and several have achieved national and international recognition.

GigDog (streaming interactive internet radio station) J.R. Gentle, community

Hungry Flats (small batch, vertically integrated craft distillery) Monte Jones (MBA ’14)

InSof (accounting and inventory management) Ayush Bharti (MBA ’14)

Leftover Luxuries (high-end consignment) Wendi Smith, community

MadHatter Foods (food condiments) Nathan West and Sean Wallace, community

NewsMuze (communications platform) Joyce Smaragdis, U.Va. staff

Nouri (organic energy bars) Veneka Chagwedera (MBA ’13)

Nuduro (healthy recipe platform) Kyle Simmons (MBA ’14)

Open Form Foundation (resume development platform) Stuart Templeton and Thomas Hurt, community

Performance Diagnostics (advanced body-imaging technology) Erik Breuhaus (MBA ’14)

PhoodE (food services operations platform) Alex Becker (MBA ’14)

ProVazo (blood-sampling technology) Peter Neems (MBA ’14), Andrew Andrae, Timothy Higgins

Sana Study (on-demand tutoring service) Christine Mahoney, faculty, Batten School of Leadership & Public Policy

2013–14 i.Lab Incubator Ventures


At the heart of the Batten Institute’s activities is the pursuit of cutting-edge entrepreneurship and innovation research. Through our Center for Entrepreneurial Studies, researchers affiliated with the Batten Institute have produced more than 300 peer-reviewed and practitioner-oriented articles, teaching materials, case studies and books.

FacultyFellowsResearch GrantsResearch ConferencePublications & HonorsMilstein SymposiumInnovators’ RoundtableJournal of Business VenturingIn Focus: Solving Problems with Design Thinking

TRANSFORMATIVERESEARCH

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The prestigious Batten Fellows program brings prominent thought leaders to engage and collaborate on significant topics in entrepreneurship and innovation. Since 2001, more than 65 individuals have been named Batten Fellows, including such luminaries as Richard Shelton (Nobel Prize winner in economics), Malcolm Gladwell (best-selling author of Blink and The Tipping Point) and Jim Collins (best-selling author of Good to Great). Our Batten Fellows for the 2013–14 academic year were:

Fellows

Each year the Batten Institute allocates over $1 million to sponsor Darden faculty whose teaching and scholarship predominantly address topics in entrepreneurship and innovation. In 2013–14, Batten-sponsored faculty at Darden included:

Faculty

Raul O. Chao Associate Professor of Business Administration Areas of expertise: innovation, new product development, R&D portfolio management, organization design and incentives, complex adaptive systems

Edward D. Hess Professor of Business Administration and Batten Executive-in-Residence Areas of expertise: organic growth and innovation strategies, systems and processes, learning cultures, systems and processes, high performance organizations, and values-based leadership

Saras D. Sarasvathy Isidore Horween Research Professor of Business Administration Areas of expertise: entrepreneurship, cognitive science, behavioral economics

Michael Lenox Samuel L. Slover Research Professor of Business, Associate Dean for Innovation Programs; Academic Director of the Batten Institute for Entrepreneurship and Innovation Areas of expertise: business strategy, innovation & entrepreneurship, corporate venture capital, corporate environmental sustainability

Gregory B. Fairchild E. Thayer Bigelow Associate Professor of Business Administration Areas of expertise: entrepreneurship, business strategy, business ethics, leadership

In 2013–14, the Batten Institute sponsored

5Darden faculty members

Rashedur Chowdhury Lecturer, University College Dublin

Project:

“Toward a Theory of Stakeholder Entrepreneurship”

Yael Hochberg Assistant Professor, Northwestern University, Kellogg School of Management

Project:

“U.S. Seed Accelerator Ranking Project and Database Creation”

Daniel Forbes Associate Professor, University of Minnesota Carlson School of Management Project:

“Exploring the Ethics of Entrepreneurial Work”

George Geis Professor, Adjunct Professor, UCLA Anderson School of Management

Project:

“Semi-Organic Growth:Tactics and Strategies Behind Google’s Success” (Wiley, forthcoming 2015)


Books

Cases HemoShear, LLC: Series C Round Financing, Chaplinsky, S. and Erdman, A., F-1703 (October 2013). Flex Technology, Grushka-Cockayne, Y., Carraway, R. and Sorenson, T., QA-0811 (February 2014). Southern Bancorp, Inc.: Reviving the Rural Economy Through Financial Products and Community Involvement, Fairchild, G. and Glinska, M., ENT-0203 (June 2014). Citizen Potawatomi Community Development Corporation: Financial Inclusion in Indian Country, Fairchild, G. and Glinska, M., ENT-0202 (June 2014).

Working Papers Collective Action and the Financing of Innovation: Evidence from Crowdfunding (2014), Carr, S., Darden Business School Working Paper No. 2450510 Antecedents of Entrepreneurial Decision-Making: Prediction and Control Oriented Strategies (2014), Kuechle, G., Boulu-Reshef, B. and Carr, S., Darden Business School Working Paper No. 2431953

Publications & Honors

Jeanne Liedtka, andReW kinG and keVin Bennett

SolvIng ProblemS

wITh DeSIgnThInkIng

storiesof

whatworks

Managing Your Innovation Portfolio

c o n t r i b u t o r

Malgorzata GlinskaSenior Researcher, Batten Institute

[email protected]

THE IMPORTANCE OF PORTFOLIO MANAGEMENT

Any company engaged in new-product development (NPD) faces a series of high-stakes decisions—which ideas to pursue, how many to keep in the pipeline, and how to allocate scarce innovation dollars.

Portfolio management, therefore, is critical to successful NPD. It is about resource allocation—how a company invests its capital and people. It is also about project selec-tion—choosing which projects to invest in and ensuring that there is a pipeline of big new-product winners. And, most significantly, portfolio management is about strategy.1

Executives find that innovation portfolio management is helping them to:

• Maximize their returns on R&D spending• Maintain their company’s competitive position• Allocate scarce resources • Create a link between project selection and business strategy• Achieve a stronger focus• Achieve the right mix of projects• Communicate project priorities both vertically and horizontally within the

organization• Provide greater objectivity in project selection2

BATTEN BRIEF INGIMPROVING THE WORLD THROUGH ENTREPRENEURSHIP AND INNOVATION SEP 2013

INNOVATORS’ ROUNDTABLE REPORT

INNOVATORS' ROUNDTABLE REPORT, SPRING 2013. CHARLOTTESVILLE, VIRGINIA.

1 Cooper, R.G., Edgett, S.J., and Kleinschmidt, E.J. 2000. “New Problems, New Solutions: Making Portfolio Management More Effective.” Research Technology Management.

2 Ibid.

Unleashing Innovation: AFTER THE LIGHTBULB MOMENT, HARD WORK

c o n t r i b u t o r

Malgorzata GlinskaSenior Researcher, Batten Institute

[email protected]

Like miniskirts and platform shoes, innovation initiatives have swung in and out of fashion. But judging by recent headlines such as “Less Innovation, More Inequality,”1 “Is Innovation Leading to a New Age of Productivity in the U.S.?”2 and “Persistence, Innovation, Save a Starving Owl,”3 not only is innovation in vogue again, it is viewed as a silver bullet for a myriad of today’s problems.

Successful innovation has certainly been a cure for stagnant growth. In once mature in-dustries, such as consumer electronics, innovation has led to explosive sales. No wonder that executives are desperate to unlock its secrets. But as recent global studies attest, that’s not easy. Despite increased investment in innovation, only 18% of executives from more than 500 companies in France, the U.K. and the U.S. surveyed by Accenture believe their company’s innovation strategy delivers a competitive advantage.4

Contrary to the romantic innovation myth, which glorifies a lone inventor with a sudden flash of insight, innovation is a team sport. It's about turning a brilliant idea into a commercially viable product that people will buy. And that requires the focused effort of many people working together as well as formal methodologies and business processes that need to be systematically reinvented for speed and efficiency.

This Batten Briefing sheds light on the hard work that comes after “the lightbulb moment.” It considers the challenge of exploiting the potential of existing innova-tions while simultaneously exploring the possibilities for breakthrough growth. It also discusses the need to engage customers in the innovation process in order to improve the fit between offerings and customer needs and speed up the development of new products. Because one of the most critical aspects of collaboration with customers is the creation and use of intellectual property, this Briefing discusses the challenges of managing IP. And last but not least, there’s no innovation without mistakes and false starts; that’s why, as this Briefing notes, it’s crucial to create a culture where employees are not afraid to experiment and fail.

BATTEN BRIEF INGIMPROVING THE WORLD THROUGH ENTREPRENEURSHIP AND INNOVATION DEC 2013

1 Phelps, E.S. 2013. “Less Innovation, More Inequal-ity.” The New York Times.

2 Chandra, S., Miller, R. and Burrows, P. 2013. “Is Innovation Leading to a New Age of Productivity in the U.S.?” Bloomberg BusinessWeek.

3 Jouvenal, J. 2012. “Persistence, Innovation, Save a Starving Owl.” The Washington Post.

4 Koetzier, W. and Alon, A. 2013. “Why ‘Low-Risk’ Innovation Is Costly: Overcoming the Perils of Renovation and Invention.” Accenture.

INNOVATORS' ROUNDTABLE REPORT

CONTRARY TO THE ROMANTIC INNOVATION MYTH, WHICH GLORIFIES A LONE INVENTOR WITH A SUDDEN FLASH OF INSIGHT, INNOVATION IS A TEAM SPORT.”

l e a d s c h o l a r s

Sean CarrExecutive Director, Batten Institute, Assistant

Professor of Business Administration

[email protected]

Michael LenoxSamuel L. Slover Research Professor of Business,

Academic Director and Associate Dean, Batten

Institute, [email protected]

IN BRIEFAmerica has a middle-class jobs problem. Over the past thirty years, jobs paying middle-class salaries—that is, occupations paying within 50 percent of median earn-ings—have been disappearing, at least relative to the high-wage and low-wage jobs on the pay scale. Moreover, this declining trend has occurred as the median wage itself has stagnated. In the wake of the Great Recession and after the worst decade of job growth in over 50 years, the U.S. is left with an alarming middle-class jobs gap.1

The 2013-14 season of the Milstein Symposium seeks to address this critical employ-ment challenge by fostering thoughtful conversation and productive dialogue about how to create and sustain the jobs of the future. The next commission in this series, which convenes May 12-13, will focus on whether and how entrepreneurs and entre-preneurship can restart the engine of middle-class job creation.

This Batten Briefing offers a brief overview of the issues relevant for this discus-sion, beginning with a picture of middle-class employment, the effects of recession and recovery on that sector, and a summary of the causes for the “hollowing-out” of middle-class jobs. The second part of the Briefing explores the job-creating poten-tial for entrepreneurship, including a profile of today’s entrepreneurs, and concludes with potential policy levers that may motivate entrepreneurial activities that generate middle-class opportunities.

BATTEN BRIEF INGIMPROVING THE WORLD THROUGH ENTREPRENEURSHIP AND INNOVATION APR 2014

SPECIAL ISSUE

Entrepreneurship and the Middle Class: CAN STARTUPS SAVE THE AMERICAN DREAM?

Presented by the University of Virginia’s Miller Center in partnership with the Batten Institute for Entrepreneurship and Innovation, University of Virginia Darden School of Business

A Research Briefing for the Howard P. Milstein Symposium: Ideas for a New American Century

ABOUT THE MILSTEIN SYMPOSIUM

The University of

Virginia’s Miller

Center launched the

Howard P. Milstein

Symposium: Ideas

for a New American

Century in September 2013. This five-year

initiative convenes distinguished stake-

holders and eminent scholars to advance

innovative, non-partisan, action-oriented

ideas, grounded in history, to help rebuild

the American Dream. The Miller Center

will organize three Milstein commissions

each year.

Solving Problems With Design Thinking: Ten Stories of What Works, Liedtka, J., King, A. and Bennett, K. (2013), Columbia Business Press, New York.

The Strategist’s Toolkit, Lenox, M. and Harris, J. (2013), Darden Business Publishing, Charlottesville, Va.

Managing Your Innovation Portfolio (September 2013), Glinska, M., Batten Briefing: Innovators’ Roundtable Series.

Unleashing Innovation: After the Lightbulb Moment, Hard Work (December 2013), Glinska, M., Batten Briefing: Innovators’ Roundtable Series.

Entrepreneurship and the Middle Class: Can Startups Save the American Dream? (April 2014), Carr, S. and Lenox, M., A Batten Briefing for the Howard P. Milstein Symposium: Ideas for a New American Century.

Recognition Saras Sarasvathy, awarded Honorary Doctor of Humane Letters, Babson College, 2013.

Raul Chao, elected president, Product Innovation and Technology Management, Production and Operations Management Society.

Saras D. Sarasvathy’s and Sankaran Venkataraman’s paper “Entrepreneurship as Method: Open Questions for an Entrepreneurial

Future,” Entrepreneurship Theory and Practice (2011), was one of the top 10 most-cited papers in 2013.

Articles Incentives in a Stage Gate Process (2014), Chao, R. O., Lichtendahl, K. C. and Grushka Cockayne, Y., Production and Operations Management, 23(8), 1286-1298.

Tolerance for Failure and Incentives for Collaborative Innovation (2014), Hutchison Krupat, J. and Chao, R. O., Production and Operations Management, 23(8), 1265-1285.

Exploring the Socio-Cultural Drivers of De Novo versus De Alio Entry in Emerging Industries (2013), York, J. and Lenox, M. (2013), Strategic Management Journal.

A Skeptic’s Guide to 3D Printing (2013), Laseter, T. and Hutchison-Krupat, J., strategy+business.

Batten Briefings Distributed to scholars, practitioners and deans of accredited business schools worldwide, Batten Briefings is a regular series communicating the latest findings from Institute-sponsored research for a broad audience.

Each year the Batten Institute solicits proposals from any U.Va. faculty member pursuing rigorous and relevant research in entrepreneurship and innovation. The following scholarly projects were awarded support in 2013–14:

The Darden-Cambridge Judge Entrepreneurship and Innovation Research Conference, hosted in partnership with the Cambridge Judge School of Business, took place in June 2014 at the University of Cambridge, United Kingdom. More than 74 scholars representing over 60 different institutions from 20 countries participated in two days of discus-sion about cutting-edge issues of entrepreneurship, technology and innovation.

“Entrepreneurship and the Ambicultural Orientation in Taiwan”Ming-Jer Chen Leslie E. Grayson Professor of Business, Darden School of Business

“Intelliject: A Case Study of a Successful Entrepreneurial Venture”Michael E. GormanProfessor, Engineering & Society, School of Engineering & Applied Science

“The Conundrum of Operational Excellence and Innovation”Edward D. Hess Professor of Business Administration and Batten Executive-in-Residence, Darden School of Business

“Design Thinking for Innovation: An Examination of the Efficacy of its Tools and Processes”Jeanne M. Liedtka United Technologies Corporation Professor of Business Administration, Darden School of Business

“Do General Managerial Skills Spur Innovation?”Pedro MatosAssociate Professor of Business Administration, Darden School of Business

“Intellectual Property Rights as International Trade Protection”Sonal S. Pandya Associate Professor, Department of Politics, College of Arts & Sciences

“Project QUID (Qualitative, Useful and Interesting Data)”Saras D. SarasvathyIsidore Horween Research Professor of Business Administration, Darden School of Business

“Budgeting for Science and Innovation: A Comparison of the United States, the European Union and Japan”James SavageProfessor, Department of Politics, College of Arts & Sciences

“The Hex of Radical Innovation in Corporate Entrepreneurship and New Ventures”Thomas J. Steenburgh Paul M. Hammaker Professor, Darden School of Business

Research Grants

Research Conference

In 2013–14, the Batten Institute awarded

9entrepreneurship & innovation

research grants


Each year the Batten Institute convenes senior innovation executives from eight to 10 leading firms for day-long discussions about best practices in innovation. This has become a high-impact engagement for Darden faculty, with premier corporate partners.

“Innovation in the Age of Smart Machines: People, Process and the Power of Technology”17 April 2013, in partnership with the Thomas Jefferson Foundation

Location: Robert H. Smith Center at Montalto, Thomas Jefferson Foundation, Charlottesville, Va.

The Batten Institute supports the Journal of Business Venturing, the premier scholarly journal devoted to entrepreneurship and innovation. JBV is ranked by the Social Science Citation Index as one of the world’s most influential management journals. From 1995 to 2009, Darden Professor S. Venkataraman served as the JBV’s editor-in-chief; the current managing editor is Darden researcher Sarasa Subramony.

Participants:

Innovators’ Roundtable

Journal of Business Venturing

The Batten Institute joined with U.Va.’s Miller Center for an action-oriented symposium about how entrepreneurship can play a role in middle-class job growth. Funding for the symposium was provided by philanthropist, business and civic leader Howard P. Milstein.

Milstein Symposium

Commission Co-ChairsSteve Case, Chairman and CEO, Revolution LLC

Carly Fiorina, former Chairman and CEO, Hewlett-Packard

Can Startups Save the American

Dream?The Miller CenTer • UniversiTy of virginia

in PaRtnERSHiP witH

Photo by Tom Cogill

Milstein Symposium co-chairs:

The Miller Center, University of Virginia12 May 2014

Steve Case

chairman, Startup America Partnership; co-chair,

National Advisory Council on Innovation and

Entrepreneurship; founder and former CEO of AOL

Carly Fiorina

president, Carly Fiorina Enterprises; former chairman

and CEO, Hewlett-Packard

Additional Commissioners

Michael Lenox, Darden School of Business (co-lead scholar)

Aaron “Ronnie” Chatterji, Duke University’s Fuqua School of Business; former senior economist, White House Council of Economic Advisers

James Douglas, former governor of Vermont, 2003-2011

Jen Medbery, founder, Kickboard

Lenny Mendonca, entrepreneur and director emeritus, McKinsey & Company

Ross Baird, executive director, Village Capital

Warren Thompson, president and chairman, Thompson Hospitality Services

Brian Meece, CEO, RocketHub

Sean Carr, Darden School of Business (co-lead scholar)

Karen Mills, senior fellow, Harvard Business School; former administrator, U.S. Small Business Administration

Gerald L. Baliles, executive director, Miller Center

Maya MacGuineas, president, Committee for a Responsible Federal Budget

Amy Cosper, vice president and editor-in-chief, Entrepreneur magazine (not pictured)


hat do you get when managers join forces with designers? You get a group of

business strategists who come up with a metaphor that makes a new strategy feel real and meaningful. You get a city that finds opportuni-ties for revitalization by drawing on its citizens’ creative energy. And a meal delivery service for the elderly that transforms itself by considering the needs not just of clients but of the employees preparing the food. In short, you get a different kind of conversa-tion that can yield unexpected solutions to thorny problems.

In Solving Problems with Design Thinking: Ten Stories of What Works (Columbia Business School Publishing, 2013), authors Liedtka, King, and Bennett share the stories of managers in a variety of organizations using the creative problem-solving process known as design thinking. “Despite popular misconceptions,” the authors write, “innate genius isn’t the only way to solve business problems creatively. Those of us who can’t part the waters need instead to build a bridge to take us from current reality to a new future.” Design thinking, they write, is a way to build that bridge.

The process starts with a deep exploration of people’s current experience, using ethnography and other insight-generating tools; it continues with the devel-opment of possibilities that can be combined into a coherent concept; and it culminates in the testing of new concepts with actual users. In its emphasis on action rather than analysis, and on treating ideas as hypotheses to be tested not with existing data but with information gathered in early forays into the marketplace, the approach is a radical departure from what goes on in most organizations. But as the variety of stories in the book suggests, the applica-tions of the approach are limited only by managers’ appetite for experimentation.

“What we saw in so many stories is that design thinking brings a systems perspective to problem solving,” Lietdka says. “The managers were willing to step outside traditional, narrowly defined areas of expertise in order to look at the broader system and the interactions within it. The result was often a higher-order solution.” 3M, for instance, used design thinking to create new ways for its sales force to engage B2B. Toyota used it to revamp its customer contact center, involving not just business leaders but the reps themselves. The city of Dublin used it to engage citizens in renewing urban neighbor-hoods. Intuit didn’t just apply design thinking to a discrete project; the company scaled the approach throughout the company, embedding it as a core competence among all employees.

Take the story of The Good Kitchen, a subsidized meal delivery service for the elderly in Denmark, which partnered with a design firm to improve its offering. The project could have been limited to tweaking the menu, but it turned into a much more comprehensive effort to understand the needs and desires of the elderly clients and of the people working in the kitchen. “Nutritionists and medical professionals were certainly involved,” Liedtka says, “but their contributions were part of a larger, transformative solution that also reflected the self-image of the clients and the employees. Traditional expertise couldn’t get at the emotional piece—it took ethnography to develop that deep understanding.”

A story that stands out for her was about a consor-tium of French financial services institutions—many of them head-to-head competitors—that used design tools to explore their customers’ experiences with banking and money. “So many businesses are caught up in what’s objective and quantifiable, but when managers see what design thinking makes possible, they get caught up in it. And that’s because it speaks to something very human.”

W

What we saw in so many of the stories is that design thinking brings a systems

perspective to problem solving.

INFOCUS

Solving Problems with Design Thinking

A new book by Darden professor Jeanne Liedtka, Batten Institute researcher Andrew King, and Darden alumnus Kevin Bennett (MBA ’12) shows how ordinary managers can use the approaches of designers to address business, organizational, and civic issues.

Darden Professor Jeanne Liedtka discusses design-thinking with visitors from King Fahd University of Petroleum and Minerals, Saudi Arabia.

Andrew King, co-author and Batten Senior Researcher


The Batten Institute supports a vast network of energetic, entrepreneurial leaders. We do so by encouraging programs, events and other forums that stimulate collaboration and engage the broader Darden, U.Va., U.S., and international communities around entrepreneurship and innovation.

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E-ConferenceStudent ClubsAlumni Startup WorkspacesiDEA NetworkU.Va. and Regional EcosystemVirtual CommunitiesMediaIn Focus: Darden–1776 Partnership Taps the D.C. Start-up Scene

ENERGIZEDCOMMUNITY


In response to a strong demand from alumni who have been looking to Darden for services that support alumni entrepreneurs in the Bay Area and Washington, D.C., the Batten Institute established relationships with incubator-style shared workspaces at Plug and Play Tech Center in Sunnyvale, California, and at 1776 in Washington, D.C.

The Innovators, Designers and Entrepreneurs in Action (iDEA) Network supports Darden alumni interested in entrepreneurship and innovation. Resources include an online forum as well as numerous faculty talks and workshops around the world. This past year’s events have included:

The Entrepreneurial Renaissance of Darden and CharlottesvilleSunnyvale, CA: Plug and Play Tech Center4 February 2014

Darden and 1776 Partnership Kickoff EventWashington, D.C.: 17766 March 2014

The ABCs of Today’s Fundraising: Angels, Bootstraps and CrowdsWashington, D.C.: 17761 May 2014

iDEA Network

Alumni Startup Workspaces

Darden-1776 Kickoff Event, Washington, D.C.

Darden’s E-Conference is an annual event for students, alumni, investors, entrepreneurs and community members. The two-day program, organized by the Entrepreneurship and Venture Capital Club in association with the Batten Institute, focuses on life-long learning and offers speakers, panels, work-shops and activities for those interested in learning more about starting their own ventures.

The Batten Institute partners with a number of student-led organizations that seek to foster entrepreneurship and innovation.

E-Conference

Student Clubs

Entrepreneurship & Venture

Capital Club

Business Innovation & Design Club

Darden Impact VenturesDardenTechnology Club

Darden Private Equity Club

8 November 2013


Forbes Partnership The Batten Institute continues its partnership with Forbes.com, providing Darden and U.Va. with a direct channel to Forbes.com readers. Darden and U.Va.’s thought leaders of-fer blogs and commentary to share their research, insights and commentary with a global business audience.

’13–’14 Academic Year : 28,168 views

e+i : News and Notes from the Batten Institute

The Institute distributes a quarterly newsletter featuring Batten-supported research, news and events to key stake-holders, including alumni, the academic research commu-nity worldwide, and business practitioners. Each issue is distributed to approximately 19,000 contacts.

The Batten Institute manages a portfolio of digital initiatives that seek to motivate virtual communities of students, alumni, faculty and others around entrepreneurship and innovation. This includes a portal dedicated to “design thinking” called Design@Darden, and another dedicated to the principles of effectuation, called the Society for Effectual Action, at effectuation.org.

Through 2013 and 2014 the Batten Institute’s programs and faculty affiliates appeared more than 100 times in national and international media.

Virtual Communities

Media

Batten integrates Darden into the broader innovation and entrepreneurship ecosystem at U.Va. and beyond. These efforts have included a number of University-wide activities, such as the U.Va. Entrepreneurship Cup. In addition, the Institute has partnered with the Tom Tom Founders Festival to highlight innovation within Charlottesville.

U.Va. and Regional Ecosystem

U.Va. Licensing & Ventures Group, U.Va. Innovation

Entrepreneurship Group at U.Va. HackCville Tom Tom Founders Festival

Galant Center for Entrepreneurship, Mcintire School of Commerce

E N T R E P R E N E U R S H I Pfor

GALANT CENTER

OpenGrounds, U.Va. Innovation


new partnership between the Darden School and 1776, a Washington, D.C.-based

hub for start-ups, gives students and alumni more opportunities to connect with one another and with the entrepreneurial ecosystem in the nation’s capital.

1776, which opened in January 2013, offers workspace for young companies, an incubator program, mentoring, access to resources, and a full slate of networking and educational events. The Batten Institute now rents space in the facility on behalf of Darden, which is available to all Darden students and alumni. So far, 1776 is attracting not just

entrepreneurs but also investors and others looking for deals. A couple of venture capital firms and corporations, including Micro-soft, have a presence in the space.

“Physical spaces help people connect,” says Philippe Sommer, the director of Darden’s Center for Entrepreneurial Leadership. “Virtual spaces, like chat rooms, just aren’t the same.” 1776, he hopes, will be a gathering place for members of the Darden commu-nity who either live in the district or are just passing through. “Instead of sitting alone in a room, people will have a place where they can go, a place where they can talk to other people doing similar kinds of work.”

Jenny Schretter, the D.C.-based founder of jewelry company KOLTON.J, a consultant to start-ups, and a student in Darden’s executive MBA program, imme-diately saw in 1776 an opportunity to bring together various members of the Darden community. “Students and alumni in the D.C. area often want to be involved in Darden boot camps and pitch nights, but it can be difficult for us to make it down to Charlottesville,” she says. “There’s a hunger for involvement and a genuine interest in building relationships.”

Schretter and fellow students Brian Carruth and Varun Solan have been instrumental in getting the Darden–1776 partnership off the ground. A kickoff event in March 2014 that they helped plan drew approximately 120 people.

“The D.C. area is in Darden’s backyard, and it has one of the largest concentrations of Darden alumni in the country,” says Stephanie Bennett (MBA ’09), who is working with other leaders in Darden’s D.C. and Baltimore alumni chapter to plan programs at 1776. “Being an entrepreneur can be lonely and scary,” says Bennett, a financial advisor whose clients include small-business owners. “1776 provides access to such great resources and a support system. Alumni are very enthusiastic about the partnership.”

In addition to giving Darden students and alumni a landing space in D.C., the partnership with 1776 also helps them get plugged into what has become a vibrant start-up scene. “It used to be that most new ventures in D.C. were spun out from government work,” Sommer notes. “But that’s no longer the case. The entrepreneurial ecosystem has grown to the point where there’s now a critical mass of ventures not related to the government. 1776 is a visible sign of that.” Schretter says that she has observed a proliferation of tech and telecommunications start-ups in particular.

The first Darden-sponsored event at 1776, “The ABCs of Today’s Fundraising: Angels, Bootstraps and Crowds,” was held in May 2014. The event, which was open to the entire 1776 community, included one-on-one mentoring sessions with experienced investors and entrepreneurs. Future events include a pitch night with ventures from U.Va.’s i.Lab Incubator and a panel discussion about the different types of skills founders need as their ventures grow.

A

Physical spaces help people connect. Virtual spaces, like chat

rooms, just aren’t the same.

Alumni and students have helped facilitate a partnership between the Darden School and 1776, a venue for entrepreneurs in Washington, D.C., that offers a physical space and programs for start-ups.

INFOCUS

Darden-1776 Partnership Taps the D.C. Start-Up Scene


FY 2013–14

Administration

Administration $666,034Outreach $105,864

Center for Entrepreneurial Studies (CES)

Researchers $461,279 Research Grants $115,429Batten Fellows $23,187 Conferences $45,215Faculty Salaries $966,827

Center for Entrepreneurial Leadership (CEL)

MBA Scholarships $1,097,400CEL Staff $558,599Incubator $295,480Internships $179,418Courses $58,965Alumni Support $55,543Competitions $27,275

FY 2013–14 Budget

12%CEL Staff6%

Incubator

4%Internships

1%Courses

1%Competitions

1%Alumni Support

24%MBA Scholarships

2%Outreach

14%Administration21%

Faculty Salaries

1%Conferences

1%Batten Fellows

2%Research

Grants

10%Researchers

Administration Center for Entrepreneurial Leadership

Cen

ter

for

Entr

epre

neur

ial S

tudies

BATTEN INSTITUTE

$4,656,515FY 2013–14 BUDGET

$4,656,515Total Budget

Income to support the programs and activities of the Batten Institute is provided primarily by an endowment established by Frank Batten, Sr. and the Batten family. As of June 2014, the market value of the endowment had reached approximately $113 million, which supported an annual budget of approximately $4.7 million for the 2013-14 academic year.

FY 12 FY 13 FY 14

Administration $446,693 $557,785 $666,034 Outreach $334,796 $189,369 $105,864

Subtotal $781,489 $747,154 $771,898

CEL Staff $354,030 $479,160 $558,599 Alumni Support $39,355 $19,656 $55,543 Incubator $164,399 $275,017 $295,480 Internships $73,970 $97,412 $179,418Competitions $45,231 $42,513 $27,275Courses $35,477 $23,167 $58,965 MBA Scholarships $653,900 $971,600 $1,097,400

Subtotal $1,366,362 $1,908,525 $2,272,680

Researchers $375,461 $395,465 $461,279 Research Grants $170,498 $152,766 $115,429 Batten Fellows $1,945 $19,822 $23,187 PhD Fellowships $72,943 $81,045 $206 Faculty Salaries $1,031,027 $1,272,330 $966,827 Conferences $552,384 $144,643 $45,215

Subtotal $2,204,258 $2,066,071 $1,612,143

Total Operating Budget $4,352,109 $4,721,750 $4,656,721

FY 12 FY 13 FY 14

Spendable Balance $2,618,455 $3,476,523 $2,636,282

Endowment Interest $4,517,880 $3,426,678 $3,576,776 Craddock Fund $16,000 $20,000 $23,000 20 Account Interest $30,505 $30,505 $32,878 Sponsorships & Fees $94,044 $116,450 $80,061 i.Lab Expansion Project $— $1,109,499 $64,409 Scholarships $653,900 $971,600 $1,097,400

Total Income $5,312,329 $5,674,732 $4,874,524

Operating Expenses $(4,352,109) $(4,721,750) $(4,656,721)i.Lab Expansion Project $(102,152) $(1,793,223) —

Total Expenses $(4,454,261) $(6,514,973) $(4,656,721)

Ending Balance $3,476,523 $2,636,282 $2,854,085

Expenses

Cash Flow

Financial Statements

Center for Entrepreneurial Leadership (CEL)

Administration

Center for Entrepreneurial Studies (CES)

Income

Expenses


Philippe Sommer Director, Center for Entrepreneurial Leadership; Director, i.Lab at U.Va. B.A., Amherst College; MBA, Columbia University

Sean D. Carr Executive Director and Assistant Professor B.A., Northwestern University; M.S., Columbia University; MBA, University of Virginia Darden School of Business; Ph.D., University of Virginia

Michael Lenox Academic Director and Associate Dean; Samuel L. Slover Research Professor of Business Administration B.S., M.S., University of Virginia; Ph.D., Massachusetts Institute of Technology

Joyce Smaragdis Associate Director of Outreach B.A., University of Virginia; M.A., Virginia Polytechnic Institute and State University

Derry Wade Assistant Director of Outreach A.B., Smith College; M.A., University of Virginia

Debbie White Associate Director of Operations B.A., University of Virginia; M.A., George Washington University

Gayle Noble Office Manager Pan American Business School

Asif Mehedi Research Associate B.B.A., University of Dhaka; MBA, University of Virginia Darden School of Business

Amy L. Halliday Managing Editor, Batten Publications A.B., Brown University; M.Phil., University of Oxford

MJ Dougherty Toms Associate Director, Center for Entrepreneurial Leadership B.A., Williams College; MBA, Yale University

Kathryne Carr Director, i.Lab Incubator B.A., Alleghany College

Veronica McMillion Special Projects Manager B.A., University of Virginia

Shivon Scott i.Lab Program Manager B.S., Cornell University; M.S., Rutgers University

Center for Entrepreneurial Leadership

Erika Herz Director of Intellectual Capital B.A., Wellesley College; MBA, University of Virginia Darden School of Business

Malgorzata “Gosia” Glinska Senior Research Associate B.A., University of Gdansk, Poland; M.A., Boston University; M.F.A., University of Virginia

Andrew King Senior Research Associate B.A., The University of the South; M.S., Oxford Brookes University

Center for Entrepreneurial Studies

Leadership

Administration


Mailing AddressBatten Institute for Entrepreneurship and InnovationDarden School of BusinessUniversity of VirginiaP. O. Box 6550Charlottesville, VA 22906-6550

Courier AddressBatten Institute for Entrepreneurship and InnovationDarden School of BusinessUniversity of Virginia100 Darden BoulevardCharlottesville, VA 22903

Phone+1-434-924-1335

[email protected]

NewsletterTo receive our quarterly newsletter, please send an email request to [email protected]

Webwww.batteninstitute.orgilabatuva.org

Twitter@BattenInstitute @DardenEship @DesignatDarden

44 BATTEN INST ITUTE ANNUAL REPORT 2014

Batten Institute for Entrepreneurship and InnovationDarden School of BusinessUniversity of VirginiaP. O. Box 6550Charlottesville, VA 22906-6550

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