The 24k ppl die (within
3 years) in SF
18,695 Demand for Rent
People who want homes
only at certain times.
Need for housing
& prestige for scientists
There is money in research
however it is ineﬃciently and
How do we bridge this gap?
“Technology startups today work very well for
making a super-eﬃcient piston engine, but
they are unlikely to fund the kind of open-
ended R+D required to develop a jet engine.”
- Sam Altman
Researchers at Bell are credited with the
development of the transistor, laser, Unix, and the
languages C, C++ and S.
Dupont Research Labs is responsible for discoveries
such as Rayon, Teﬂon, and Solar Cells.
Dupont & Bell
Every dollar invested returns $14 to the economy
Average Angel Investor Returns
from investment to exit
Scientist & Researchers
Grants require a detailed
objective and agenda, as well
as a short-term return
Investors do not want
to fund long-term research
San Francisco Housing analysis
Why is money spent on NASA not wasted
Apple R&D Spending Charts
Apple R&D spending rises but still trails Facebook, Google, Amazon
California companies lead nation R&D spending performance
Annual Global R&D Report by R&D Mag
Y Combinator Research Objective
Dow-Dupont raises even more concerns America is abandoning
Investing for the long term
In Q1, R&D totaled 16.6% of Google revenue,
Bloomberg said, up from 13.8% two years earlier.
While Google aims to make gains in artiﬁcial
intelligence, it’s trailing in software bots, an area
where both Microsoft and Facebook made recent
Google’s R&D spending will rise 16% in 2016 to
$14.3 billion, BMO Capital Markets estimates.
Then there’s Amazon. In Q1, Amazon’s R&D
spending was up 28% to $3.53 billion, Bloomberg
reported. At that growth rate, Amazon’s R&D
spending will likely top Google’s this year.
Is crowdfunding a viable solution to the lack of
funding in the research industry?
Discovery: There is a lack of general
interest in research projects, and
distrust of science.
Why is there a lack of long-term
Besides the idea that long-term research costs too
much, takes too long, and is high risk, Impatient
investors are eager for immediate stock price boosts.
Dow-Dupont & Bell Nokia
Bell Labs has virtually disappeared as a result of
mergers that left it owned by Nokia.
America’s two leading chemical manufacturers
combined. About a month later, the new CEO vowed
to cut R&D, and break the company into three smaller
ﬁrms as a reaction to investor pressure.
In a 2013 Survey of more than 1,000 Board Members
and C-Suite executives around the world:
63% of respondents said the pressure to generate
short term results has increased over the past 5 years
79% felt especially pressured to demonstrate strong
ﬁnancial performance over a period of 2 years or less
How to beat the investors.
Tech companies such as Apple, Google, Amazon,
and Facebook continue to invest in research at very
This control over investors is often achieved by using
two classes of stock: Voting and nonvoting shares.
This allows these companies to invest billions in
We learned crowdfunding is not a viable solution
Short term results (ex: Kickstarter backer rewards)