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Hawaii’s Dual Use CompaniesTransitioning for Growth
Hawaii Venture Capital AssociationSeptember 13, 2006
Ian Y. Kitajima
The Message
Federal R&D Funding has createdInfrastructureTechnologiesCompanies
The Message
Next step is Sustainability, i.e., moving away from relying on federal R&D dollars at the current levels
The Message
How we can achieve this is to focus on improving our…
CompetitivenessCommercializationCooperation
The Message
Next step: Dual-Use and VC Community “talking story”
The Opportunity
Dual Use Companies Technical People Technology Focus
Have less Business People Market Focus Business models that are sustainable
A VC’s Top 10 List on Dual Use10. My questions make no sense to them, they think I’m stupid9. Small service providers and 8(a)s not setup to change the world8. VC’s won’t fund commercialization within existing walls7. Many should consider licensing, and forget6. Most need a marketing person, asap5. Understands gov’t contracting process but not the VC funding process 4. Manage multiple projects well, not setup to focus on one technology to
commercialize. 3. Transition from collegial to entrepreneurial culture will be difficult. 2. Struggle to think beyond the gov’t customers 1. Focus more on technology dev, than on biz dev
Federal R&D Funding
$4BRDT&E* 10 yrs
*Research, Development, Test & Evaluation
Source: Enterprise Honolulu Defense & Dual Use Strategic Plan
Federal R&D Funding
$323.5M63 RDT&E Projects
in 2005 Source: Enterprise Honolulu Defense & Dual Use Strategic Plan
Other Data
ð49th75 / yrPatent Activity
ð47th1?Business created from UH R&D (2000-2002)
➶24th$3.5M / yrSBIR grant funding
➶15th65 / yrScientists & Engineers % of WF
➶~ 80+No of Defense DU Companies
TrendRank2003
Sources: HIPA 2005 Policy Review; University of Hawaii OTTED, U.S. Department of Commerce, Bureau of Economic Analysis; U.S. Department of Commerce, Census Bureau; National Science Foundation/Science Resources Study Division; U.S. Bureau of Labor Statistics; Milken Institute; National Venture Capital Association; U.S. Patent & Trademark Of.ce; U.S. Of.ce of Management & Budget; U.S. Small Business Administration.
Infrastructure - Created
Source: Enterprise Honolulu Defense & Dual Use Strategic Plan
Technology - Created
Navatek Teams With General Dynamics to Win $8.4 Million Navy USV Contract
Companies - Created
Sustainability – Next Step
CompetitivenessCommercializationCooperation
How?
Competitiveness – SBIRs/STTRsCommercialization - HTDVCooperation – Federal Network
SBIRs/STTRs - Competitiveness
National competition of ideasSeed funding for high-risk ideasDue diligence by national expertsReduce risks – technical, team, marketNon-dilutive capitalFFF (Friends, Family, FEDS)
SBIR ProgramPhase I – Funds Feasibility StudyPhase II – Funds PrototypePhase III – BYOF, rights to sell
HTDV – CommercializationHawaii Technology Development Venture
2 years
33 projects
$7.4M
Federal Network – “Round um up”
Catalyst – EH Defense Industry Plan
Recommendation – Band Together
Face Goliath alone?
DAN
Recommendation – Band Together
Trust & Teamwork
Kawika
Talking StoryShared DreamsShared Nightmares
About What?
Technology Center Recruiting & Retaining Workforce Development Business Development
“First Wed”Social gathering to foster
Relationship building Collaborations Knowledge sharing
Focused on industry issues Defined by industry Driven by industry Owned by industry
“First Wed”
Yahoo GroupsList of MembersCalendar Alerts
File UploadsLinksPolls
Custom DatabasePhoto GalleriesPush to Email
What’s Next
First Wed (by invitation only) October 4th Sam Choy’s on Nimitz 7:30am to 9:00am
Extra Slides
Language Barrier
Non-imaging SOI utilizing BD is cool!
Who’s the market, how big?
Technology, Team, TractionTraction, Team, Technology
The man wants a blue suit, turn on the blue lights
Vitamin or Painkiller?
Good questionWho’s the competition?
Study the solicitationWhat’s the problem?
Dual Use CommunityVenture Community
Language Barrier
Acquisitions / Program of Record
Acquisitions / IPOs
NIST’s ATP, In-Q-Tel, Hi-CPVCs
SBIRs/STTRs, CEROS, HTDV
Angels
IR&D, Hi-CPFFFs
Dual Use CommunityVenture Community
