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15.369 Corporate Entrepreneurship: Strategies for Technology-Based New Business Development
Fall 2007
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Components of Innovation Ecosystems
Technology
Entrepreneurs
Capital
Infrastructure
Market
Structure of Innovation Capital
Large Corporations: $10.5B
Venture Capital: $25.5B
Angels: $24.6B
Federal Government: $ 8.0B
State and Regional:
Universities: ?
Foundations:
Capital trends
Venture Capital
Average size of funds continues to increase
Investments focused on later stages
Preferred size of investments: $3MM-$5MM
Slow re-appearance of early stage funds
Large Companies
R&D investments have kept pace with revenues
Research money has been re-directed to short-term
Focus on sourcing technology from the outside
Emergence of other sources of external investment
Corporate VC
University funds
Angels
Re-emergence from the post-bubble phase
Investing in groups
Capital trends (continued)
Federal Government
Significant growth over the last few years is slowing down
Most funds for NIH and DOD
Other
States/regions establishing economic development funds
MA: Mass Tech Transfer Center
Universities and teaching hospitals establishing entrepreneurship
funds and aggressive licensing efforts
Venture capital: University of MA, Amherst, Partners
Early stage: MIT Deshpande Center
Non profit foundations accelerating investments
Gates Foundation
Entrepreneurial and infrastructure trends
Entrepreneurial culture expanding globally beyond Boston and Silicon
Valley
Local efforts in various parts of the country
Educational programs at Universities
Global communications
Infrastructure often ignored
Key role of law, accounting, regulatory, banking groups
Market access is key
Technology Trends
Universities and teaching hospitals emerging as the key incubators for
invention
Emphasis on entrepreneurship and licensing
The role of small companies is growing rapidly
Allocation of Federal funds
New type of Joint Venture small with large
Corporate R&D laboratories have diminished in importance
The impact of mid size companies is not well understood
Federal Labs are still struggling with spin-out and licensing issues
Other groups, such as Battelle/Draper/Foster Miller are also
accelerating spin-out and licensing activities
MIT Entrepreneurial Ecosystem
2007
1960
Sloan
Entrepreneurial
Course
Enterprise
Forum
1978 1990
50K
Competition
1996
Sloan
E-Lab
2002
Deshpande
Center
Venture
Mentoring
Services
TLO ILP
TechLink I nnovation Club TinyTechClub Entrepreneurs Club
Sci & Eng Bus. Club VC&PE Club Sloan Entrepreneurs E-Society
Entr. For I nt Dev. Developmental Entrep. LemelsonPrize
Selected Statistics
100K Competition
85 start-ups/ market cap greater than $10B/2,500 jobs
$600MM in VC investments
DeshpandeCenter
64 projects/$7MM in grants/11 spin-outs/132 employees
$88MM from outside investments/12 VC firms
