Innovative Business Incubator at Zahn Center - San Diego State University

Zahn Center A Beginning . Faculty Meeting 10/17/2011 5/13/2025 Lunchbox Lectures 1

Our Mission Provide an environment for San Diego State University Students to innovate, create, and build a business using the resources of an Incubator to mentor, teach, and develop new outlets for Technology and Innovations 5/13/2025 Lunchbox Lectures 2

Incubator Overview A center which provides a place for small businesses to start The Team Provides Space and Presence To meet To work To hold your work environment Provides an IT environment Provides Mentors to the Team Sets definite milestones and management overview of the Team. Provides Resources to the Team 5/13/2025 Lunchbox Lectures 3

The Center Timelines Develop Charter and operating guidelines Spring Business Plan Competition Lunchbox Lecture Series Collaborate with the College of Business, EMC center. Work Across Campus to Develop Entrepreneurship Build out initial Space Secure additional Space as needed Initial team accepted Formal (Prize team) entry Batch entry awards January 2012. March 2012 Now Biweekly Weekly Meetings Center Opening Oct March 12 in 2012 November 2011 March 2012 Twice yearly. 5/13/2025 Lunchbox Lectures 4

Who might enter the Center? Initial idea stage (Non paying user of resources) Concepts and some idea of the product. Some progress on how to build it Perhaps some idea of how to sell and market it Needs Business development help. Secure minor funds to build prototype. Seed funding Preparation stage ( Incubator Prize Stage Ready) (Paying) Have started on a prototype Done initial Marketing studies Have some idea of costs and pricing Work towards full business plan Secure Seed Funding round ($100k to $750k) Seed Funding Stage (Incubator mentoring program) (Paying more) Only if further R&D is needed with Students on team Prefer to send off outside the center at this stage Setup all governance and C level staff, mentors. 5/13/2025 Lunchbox Lectures 5

Business Plan Competition Planned for Spring 2012 Initial Prize to be $25,000 to be allocated to Teams. Rules to come out by November Collaboration between College of Business Administration and College of Engineering. Top 3 winners will be entered into the Incubator. Teams 4-x will also get help, just no prize Create a business plan around a Technical product or service. Team Must enter the Incubator to receive prize. 5/13/2025 Lunchbox Lectures 6

Center resources (Open) Full time staff by appointment only Available to meet and discuss how to start, what to do. Mentoring for teams on a full time basis. Resource Access Video Library All lectures and presentations on server for checkout Reference material and links Web site Cross links to EMC, other incubators Cross linked on SDSU campus and engineering web sites. Space to meet, collaborate, meet each other. 5/13/2025 Lunchbox Lectures 7

Additional Duties Develop more interaction between Outside Business and Engineering Aid Faculty and Government Grant processes Help build Intern programs and placements As funding permits, sponsor Grad Students on innovation projects, leading to a business plan. Develop more ties to industry, other incubators, mentors. Produce more funding for Center to increase participation. 5/13/2025 Lunchbox Lectures 8

Incubator Team Support Additional mentoring towards seed funding goals. Periodic review of business plan development Assignment of working advisors and mentor. Financial review Accounting setup for funds. Prototype development assistance Machine shop PCB Access Software Discounted or credited services (Team Pays for this) Corporate Legal Patent Development (Outside of University system) IT Services Web page creation 5/13/2025 Lunchbox Lectures 9

Incubator Team Support Rolodex access to outside contacts. Starting company documentation set. NDA, Employee contract, employee handbook, Contract outlines, MOU examples. More Advanced IT setups as needed, at a discount. Contact Manager Sales and business development structures. Project Management Software. Quickbooks More added as needed. 5/13/2025 Lunchbox Lectures 10

Lunchbox Lecture Series Present 1-2 hour discussions on various topics, cooperation and collaboration with the College of Business. Not teaching Business college Topics, but discussing which are necessary to take or understand. Practical approaches and real world uses of the teaching of College of Business. Push to get engineers to take business classes or collaborate with a business student. Related to Startups, company formation, operations, organization Smaller group atmosphere Q&A sessions included. Working example handouts and library Video Taped for later reference. 5/13/2025 Lunchbox Lectures 11

The Easy Part Giving lectures Getting teams to show interest and join Setting up space Creating buzz. Starting and growing the center and getting people to start companies .. 5/13/2025 Lunchbox Lectures 12

The HARD Part (Food for thought) How to engage the rest of the University College of Business Administration What is the right cooperative and economic model to be used? TTO Office What is the right IPR model to use? How can we get the overall cost of patents and general costs lower? Building a larger picture while still remaining independent and agile. How to keep more money raised towards the Teams and get more return on success? 5/13/2025 Lunchbox Lectures 13

The HARD Part (Food for thought) Finding a sustainable economic model 3-5% return at M&A/IPO stage in return for entry. Returns happen after 5+ years. Need many successes to return enough to continue funding. How to fund the center from years 3 to 6????? 3-5% will need to be shared among 3-4 entities. TTO Office University returns on investment IPR. University offices Research Foundation, EMC, General fund? Zahn Center Determining how and when Teams should Pay. Not everything is Free. Pay for space when a differentiator is there. Pay for resources used. Pay for prototyping services? 5/13/2025 Lunchbox Lectures 14

The HARD Part Finding an IPR Model that works How to work with the Tech Transfer Office TTO office is already working on many of these issues. IPR Into the center How to allow this efficiently? IPR Created in the center w/o University. How to use and license IPR jointly created. How to increase the return on IPR to the university while creating a more open IPR model? Is there a way to make IPR flow better and return more from a new model? Patent commercialization Using a one for all-all for one approach to improve Team leverage to the market? Lightly licensed ability if they are an Incubator Team with guaranteed return on the 3-5%? Others? 5/13/2025 Lunchbox Lectures 15

The HARD Part Mentors Approaching mentors for free or stock? Lowest Cash approach while in the Incubator. How to rate, monitor, retain mentoring staff? Cooperate with Connect, TCA, local? Other resources Locating and working with Discount Services Legal Web site/IT Support Approach vendors like Intuit, Salesforce.com, etc. 5/13/2025 Lunchbox Lectures 16

The HARD Part Growing the program year over year. Keeping the correct Fairness rules. When to pay When to graduate out When to accept in How to be tough on Milestones. Finding the correct position of the center Correct metrics for tracking Not tied to just Money, but real Team success. Finding the true Entrepreneurial goals Rating is on companies and success of Team. How to decouple University large corporation mentality from the startup lean and mean mentality? 5/13/2025 Lunchbox Lectures 17

Summary We need to be as creative in business just as we are in engineering and technology. We need a lot of participation and encouragement to take this to the next level How do we find Students and Teams that will enter this system? Grow national recognition and cooperation with local, state and national organizations. 5/13/2025 Lunchbox Lectures 18