The document discusses the role of universities in funding startups. It describes the NYU Entrepreneurial Institute and its Innovation Venture Fund, which provides funding, resources and support to NYU startups. The fund has invested over $1 million in 10 companies across various sectors. It helps startups get to key milestones and leverage co-investments from other funds. While money is important, the institute focuses more on educating and connecting entrepreneurs through various programs. The goals are to promote entrepreneurship university-wide and generate returns to support more innovation.

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A University’s Role in
Funding Startups
Frank Rimalovski
Executive Director, NYU Entrepreneurial Institute
Managing Director, NYU Innovation Venture Fund
March 13, 2015

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Topics
! About me
! About Entrepreneurship @ NYU
! Why funding is important?
! How do we do it?
! What have we accomplished?
! What else?
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About the Entrepreneurial Institute
! Grew from Innovation Venture Fund in 2010
! Lead NYU-wide initiative to accelerate pace
of tech commercialization & startup activity
! Separate, but work closely with tech
transfer office (Office of Industrial Liaison)
! Dedicated team of startup experts offering
resources, programs, events & staff to help
NYU startups start up
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Early Experience: 2010-12
! Lot’s of interest, but few investment-
ready ventures
! Tapping into small percent of NYU
! Disconnected from NYC ecosystem
! Common needs across sectors,
schools & students/faculty
! Mythology & misinformation abounds
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Classic Blunders
! Confusing vision with product/business
! “If you build it they will come”
! Trying to be all things to all people
! Hiring “code monkey” to build your app
! Relying on TTO to find a CEO/funding
! Fund Build Customers
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Helping startups start up

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Vision
Create a culture that
values, promotes & facilitates
technology-based entrepreneurship
university-wide

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Mission
Creating an entrepreneurial ecosystem
that serves the entire NYU community
providing inspiration, education,
networking, acceleration & funds

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Our “Customers”
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Students
Faculty
PhDs/
Researchers

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Our Focus
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Information
Technologies
Life
Science/
Healthcare
Physical
Science/
Energy

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Our Playbook
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• Celebrate
role models
• Speakers
• Events
• Incentives
• Classes
• Workshops
• Bootcamps
• Handbooks
& Guides
• Internships
• Clubs & orgs
• Showcases
• Meetups
• Social media
• Collaborative
workspaces
• Coaches
& Mentors
• Pitch Events
• Competitions
• Accelerators
• I-Corps
• Prototype funds
• Non-dilutive
fund “training”
• Venture Funds
• Gap/POC funds
Inspire Educate Connect Accelerate Fund

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NYU Innovation Venture Fund

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Fund Overview
! Philanthropic seed fund
! Evergreen: NYU sole “LP”
! Active diligence
! Help build smart syndicates
! $100-200k direct investments
! Converts, Series Seed & A
! Board observer seats
! Opportunistic follow-ons
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I V F

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Checks & Balances
Pitch to
IVF
Prelim
Diligence
Pitch to
IRB
Diligence
&
Syndicate
Building
Memo for
IRB
Approval
SVP/GC/
CFO
Approve
CFO
Signature
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Fund Portfolio
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Select Co-Investors
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By the Numbers
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Investments
10
Sectors
Info Tech: 7*
Life Sci/Health: 4*
NYU Founders (School)
CAS: 2 Medicine: 6 Eng: 1
Stern: 5 Dentistry: 2
Law: 1 Courant: 1
NYU Founders (Type)
Students: 8
Faculty: 8
Researcher: 2
IT Investments
Hardware: 2
Software: 5
Invested Capital
Invested: $1,125,000
Value: $1,289,309
Female Cofounders
40%
Total Capital Raised
$20,490,000 (>18x)
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Why this investment model?
! Participate in larger rounds to achieve
meaningful milestones & value inflection
! Invest as part of a larger syndicate
o Leverage diligence, expertise &
connections
o Follow-on financial support
o Co-investors to serve on boards
! Other sources exist in/outside NYU to fill
pre-VC needs
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Critical Role of the Fund
! Return on investment
! Demonstrates University commitment &
importance of entrepreneurship
! Raises NYU's profile amongst peer
institutions & government agencies
! Credibility & bridge building with NYC
investor community
! A catalyst for entrepreneurship within NYU
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Money not 1st item in critical path
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Our Playbook
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Inspire Educate Connect Accelerate Fund

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Other Sources of Startup
Funding for NYU Entrepreneurs
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Startup Funding Lifecycle
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Discovery Validation
Customer
Creation
Company
Building
Test
assumptions
about
customer
needs/problem
& develop MVP
Seek
Validation that
people are
interested in
your product/
service
Begins to build
demand &
improve
efficiency of
customer
acquisition
Drive growth
aggressively
& execute
business model
Invention
& ideation
Grants,
Crowdfounding
Competitions
Founders +
Credit cards
Crowdfounding
I-Corps
Accelerators
SBIR/STTR +
Friends & family
Angels
Seed funds
Venture
capital
fundsValuation*
Source: startupcompass.co

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NYU Prototyping Fund

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NYU Green Grants

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$200k NYU Entrepreneurs Challenge

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NYU Summer Launchpad

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Institute & Fund Goals
! Make entrepreneurship a campus-wide,
multi-disciplinary experience
! Bring more NYU innovations to market
! Compete for top students, faculty &
research funding
! Generate return on investment
! Create generation of entrepreneurs to
inspire & support NYU for years to come
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Questions?
entrepreneur@nyu.edu
@nyuentrepreneur
nyu.edu/entrepreneur
nyuentrepreneur.com
16 Washington Place
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Helping startups start up