Rice Alliance for Technology and Entrepreneurship

1. Rice Alliance for Technology and Entrepreneurship Capitalizing Ideas. 2009 AOM Conference Brad Burke, Managing Director August 11, 2009

2. Rice University Overview • Private university in Houston, TX • Ranked #17 overall by U.S. News & World Report • #4 – Best Value – Undergraduate University • Top 10 Engineering School / Top Bioengineering / Nanotechnology • Small size – 3,000 undergraduates, 3,000 graduates, 600 faculty • 21% of undergrad students are National Merit Finalist scholars • Adjacent to the Texas Medical Center

3. Houston Overview Houston ranked #1 Best City to Live, Work and Play - Kiplinger's Personal Finance - July 2008 Best U.S. City to Earn a Living - Forbes.com - August 18, 2008 Best City to Get Ahead - Forbes.com – June 2009 Best City for Recent College Grads - Forbes.com - June, 2008 Best City for Your Job - BusinessWeek - June, 2008 Lowest Cost of Living Among Major Metro Areas - 3Q’08 Top Metro in the Nation - Site Selection Magazine - March 2009 Best Job Growth (01/08 to 01/09)- U.S. BLS – March 2009 Nation's Healthiest Housing Market- February '09 Best City to Buy a Home - Forbes.com - July, 2008 Largest IT Service Economy - December, 2008 America's Best Cancer Hospital - M.D. Anderson Cancer Center - uly 2009 Most Accessible City for the Disabled- National Org. on Disability – Feb., 2008 Top Local Government Green Power Purchaser – EPA - July 2008

4. The Rice Alliance for Technology and Entrepreneurship was founded in 2000 University center & strategic alliance among 3 schools:

5. Rice Alliance Mission • The three-fold mission of the Rice Alliance is to: • Provide entrepreneurship education to the Rice community, the Houston business community, and beyond • Facilitate the formation of new technology start-up companies • Help make the surrounding region a leading center of technology entrepreneurship • A Catalyst for Building Successful Ventures through Education, Guidance and Connections

6. Rice’s MBA Program was one of the first to require students to take entrepreneurship Representative Courses: Managing Growth Technology Innovation & Entrep’ship The New Enterprise The New Enterprise – Business Plan Development Enterprise Exchange / Exit Venture Capital Technology Feasibility / Commercialization Assessment The course sequence roughly follow a company life cycle.

7. Concentrations in Entrepreneurship Specialized Fields of Study Course 1: Launching and building a life science start-up Course 2: Roles of Founders & Venture Capital in high tech start-ups Life Science Entrep’ship Real Estate Entrep’ship Education Entrep’ship Experiential Learning Internships Action Learning Projects (ALP)* * Required of all MBA candidates; 6-week intensive projects working for external companies

8. Entrepreneurship Faculty include both Tenure-track and Practitioners Jack Gill, Ph.D. Edward E. Williams, Ph.D. Named one of the nation's best entrepreneurship teachers by BusinessWeek H. Albert Napier, Ph.D. Acton Foundation award for Excellence in Entrepreneurship Education Dennis Murphree Murphree Ventures Leo Linbeck Robert D. Ulrich, Ph.D. Blair Garrou DFJ Mercury Atul Varadhachary, Ph.D., M.D. Marc Epstein, Ph.D. Dan Watkins, Ph.D. DFJ Mercury Ned Hill DFJ Mercury

9. Venture Capital Forums educate students and entrepreneurs on what is required to launch a start-up company Energy & Clean Technology Life Science I.T. & Web 2.0 Nanotechnology

10. Technology Venture Forums have multifaceted outcomes • Educate students & entrepreneurs on the start-up process • Bring VC’s and other investors to campus • Connect researchers with the business community • Build upon the local entrepreneurial community • Provide mentorship and advice to entrepreneurs • Outreach to current students and alumni • Connect with investor types

11. $800,000 in Prizes!! April 16-18, 2009 World’s Richest and Largest Business Plan Competition!

12. 84 Companies have successfully launched their companies after competing at the Rice Business Plan Competition Successful Company Start-up Rate % by Year of Competition During the competition’s eight-year history, 37% of teams (84 out of 228 past competitors) have gone on to successfully launch their business. Total funds raised: >$145 million (incl. $55 million in the past 12 months) 69% 50% 43% 42% 29% 21% 13% “The feedback was astonishing. Our company will work as a result of it and would not have without it.” - RBPC Competitor

13. 350 Teams applied for the 42 competition slots in 2009; $800,000 in prizes Teams Competing # of Schools 2009 U.S. Schools: 42 ArkansasBabson Berkeley (2)Brown Carnegie Mellon Chicago (2) Colorado StateCornell Dartmouth Harvard Illinois Inst. Tech. Iowa State Johns Hopkins (2) Michigan (2) MIT (2) UNC-Chapel HillNorth Dakota PurdueRiceRPI (2)San Francisco SMU (2)South FloridaStanford (2)Texas (UT-Dallas) Utah Virginia (2) Washington 36 36 36 35 34 28 “This was probably the single most important learning experience during my MBA.” - Competitor 14 9 2009 International Schools: Thammasat (Thailand) Cambridge (UK) Queen’s (Canada) SP Jain (India) Waterloo (Canada)

14. Judging Panel includes over 200 investors and mentors 2009 Judging Panel by Current Occupation # Judges 60 Venture Capital 40 Angel Investor 20 Private Equity 40 Entrepreneurs 30 Legal/Financial 20 NASA (special) 10 Corporate/Other 220 Venture Capital Corporate Financial Services Private Equity Legal Angel Investors Entrepreneurs “Still the best event for Private Equity, Venture Capital, early-stage deals and networking.” – Judge

15. There have been ~30 Rice University related start-up companies over the past 9 years 1. Advanced Biosciences 2. Advanced Reality (inactive) 3. Applied NanoFluorescence4. Aristan Medical5. BetaBatt 6. BioSonic 7. Cambrios (affiliated company) 8. Carbon Nanotechnology, Inc. (now Unidym) 9. Desmogen (inactive) 10. Ensysce Biosciences (Bob Gower) 11. Glycos Biotechnology (DFJ Mercury) 12. Houston Medical Robotics 13. itRobotics 14. LaserGen (Baylor start-up with Rice affiliation) 15. Mass Specific Force 16. Molecular Electronics Corp. (inactive) 17. MTPE (Museums Teaching Planet Earth) 18. NanoComposites 18. Nanopartz 20. NanoRidge 21. Nanospectra Biosciences 22. Nano 3D Biosciences 23. NatCore 24. NewCyte 25. Oxane Materials 26. ProMedior 27. Solterra 28. Somatogen (inactive) 29. Trellis (affiliated company) 30. Vanguard Solar (Kleiner Perkins) 31. Xilas Medical (affiliated company) Carbon Nanotechnologies Incorporated Nanospectra Biosciences

16. We have assisted in the launch of over 230 technology-based start-ups Company Start-ups Assisted # Cumulative Total Funding Raised $M 233 $505M 207 172 $350M 150 $302M 128 106 $213M 76 $118M 50 $67M $45M $23M Over 750 early-stage companies have participated in our programs over the past 9 years

17. Lessons Learned • Integration of business, engineering & science schools • Outreach programs: supplementing classroom • Advisory boards • Community entrepreneurial network • Funding • Never able to get ahead….

18. 2009 Conference Host:

19. Brad Burke bburke@rice.edu www.alliance.rice.edu