 Energizing the Ivory Tower University Alumni and Faculty Collaborate to Bring Ideas to the Marketplace
In business terms, the University of Virginia has a classic supply chain problem. Its scientists and engineers continually produce innovative and promising ideas, many of which might someday lead to commercial applications. Yet most never make it to the marketplace. Researchers appreciate the potential of their intellectual property, but they lack the time and funds to take this asset to the next level. And acquiring the expertise necessary to build an organization—either to the point where it can attract investors or license to another company—may seem out of reach.
Enter George McCabe (Col ’81), co-founder and managing partner of Pine Creek Partners, a Washington, D.C.-based private equity firm that invests in later-stage private companies. To him, the way to bridge this gap is obvious: tap the know-how of University alumni. “As a group, our alumni business experts know how to hire and deploy sales teams, design compensation plans, manufacture a product and perform precisely those tasks required to move faculty companies through this critical stage in their development,” he said. “They can help the University fulfill its mission of service by translating discovery into real tools that benefit society.”
Mr. McCabe’s inspiration led to the creation of the T100 Alumni Mentoring Program in 2003, and since then has helped 14 fledgling start-ups explore the potential of their intellectual properties. T100 is part of the Office of Economic Development, an initiative in the Office of the Vice President for Research and Graduate Studies designed to build closer connections between the University and the business community.
T100 is designed to take firms through what Mr. McCabe calls the “zygote” stage, referring to the first step in embryonic development. Start-ups need the time and the sustenance, in the form of funding and advice, to validate their business model, build a prototype, attract customers and locate appropriate sources of funding.
Over the last several years, Mr. McCabe, Office of Economic Development Director Pace Lochte and colleagues in the Office of Development and Public Affairs have created a structure for T100 that puts faculty and alumni together in a way that’s both productive and efficient. Companies seeking consideration for T100 assistance submit business plans at the beginning of the summer, specifying the type of assistance they need. An oversight committee consisting of an alumni representative (Mr. McCabe) and six University administrators reviews the plans and makes selections by Sept. 1.
The committee makes no judgment about the viability of the technology or the company’s chances of success. “We are not subject matter experts, and we don’t try to pick winners,” stressed Mr. McCabe. “If the principal investigator is dedicated to this effort and the possibility of commercialization exists, our role is simply to help companies move through the next milestones in their development.”
Next, teams of specially chosen alumni mentors hold a monthly conference call with representatives of the company, led by a dedicated facilitator who helps set an annual agenda that matches company needs with mentors’ skill sets. The T100 organizers are always on the lookout for the right alumni mentors for faculty start-ups. Good candidates are usually attracted by the opportunity to apply their professional expertise to projects that would benefit the University. Mentor teams have the opportunity to meet in person several times a year.
Each mentor is also asked to make a small contribution. This type of “seed” funding can make a difference to a company at an early stage in its development. Typically, companies use the funds to conduct market research, create a Web site or obtain specialized legal advice. But while mentors may share lists of contacts and make recommendations, they adopt a hands-off policy, which prohibits them from doing business with a T100 company. “Our goal is to put companies in a position so that the marketplace can decide their fate,” said Mr. McCabe.
T100 and the Office of Economic Development benefit the University in a number of ways. Mr. McCabe believes that viable commercialization components are critical in gaining grants and funding for University research. Foundations today, he adds, want to know that the intellectual property they help create will benefit society. Other benefits accrue as well: the process helps attract and retain faculty who see commercialization as a critical part of their career path as well as top-notch graduate students who plan to enter business. In addition, job creation benefits the local economy and opens up positions for faculty spouses.
Dr. Ariel Gomez, vice president for research and graduate studies, points to recent successes as evidence of the effective model that McCabe and others have pioneered. “George McCabe and the T100 alumni mentors have shown tremendous energy in planning and executing this program,” he said. “We are extremely grateful for their generosity in sharing their insight and expertise with our faculty.”
This material is adapted from an Envision article by William Cocke.
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