FOSTERING South Carolina’s Innovation eCONOMY The
Growth
by Supporting entrepreneurs
enabling
Academic Research
and
Of
commercialization Industry to Innovators and C o n n e c t i n g
Contents Welcome from the Executive Director 2 Our History 3 Communities We Serve 4 Industries of Focus 5 Entrepreneurs 6 Academia 8 Industry 10 Zeriscope 12 Sovi 14 Boyd Cycling 16 Carbon Conversions 18 TerraStride 20 The McNair Center 22 Watt Family Innovation Center 24 SCRA Board Innovation Centers
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Welcome
from SCRA executive Director Bob Quinn
Dear Friends, SCRA has sharpened our focus on building the Innovation Economy in South Carolina by supporting entrepreneurs, enabling academic research and its commercialization, and connecting industry to innovators in three key industry areas: Advanced Manufacturing & Materials; Information Technology; and Life Sciences. This publication showcases our dedication to these three constituencies and outlines the partnerships, funding programs and support services provided by SCRA. I am excited for the opportunity to collaborate with the great organizations across the state and improve South Carolina’s innovation landscape through increased transparency, focused partnerships, expanded grant programs, improved access to capital, refined emphasis on academia and a strengthened mentoring. I look forward to working with our team to implement these important programs. Warm regards,
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Bob Quinn
OUR HISTORY 2017
2005-2006
1983 SCRA Created By STATE LEGISLATURE
SC Launch & Innovation Centers Established
SCRA is chartered by South Carolina with a one-time allocationof $500,000 and 1,400 acres of undeveloped land.
Funded by sources such as contributions to the Industry Partnership Fund, the SC Launch Program and Innovation Centers are developed across the state.
ATI IS formed as an Affiliate To ensure SCRA is self-sustaining, a government contracting affiliate is created.
1998
THE NEW SCRA ATI is acquired, thereby enabling SCRA’s singular focus on fostering the Innovation Economy through collaborative programs with academia, industry and entrepreneurs.
SCRA & ATI Realignment In order to maintain a laserlike focus on the mission of each organization, SCRA and its affiliate, ATI, separated operations at the end of Fiscal Year 2016.
2016 |3
Communities we serve
Academia SCRA works directly with academic institutions and affiliated startups - creating partnerships to advance research capabilities and commercialize technology. Grants provide financial assistance, while SCRA’s Innovation Centers offer collaborative spaces to advance research and commercialization.
Entrepreneurs Through the SC Launch Program, SCRA provides mentoring, grants, investments and other funding to early-stage technology companies. Funding for the program comes from contributions to the Industry Partnership Fund.
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INDUSTRY SCRA partners with companies and economic development organizations in the state to create connections between industry and innovators. These partnerships enable company growth and heighten the state’s research capacity.
Industries of Focus SCRA brings together the key players in innovation. By working in close alignment with academic institutions, entrepreneurs and industry, three key areas of focus have been defined: Life Sciences; Advanced Manufacturing & Materials; and Information Technology. The Life Sciences industry is very diverse and ranges from pharmaceuticals, to medical devices, to agrobusiness. The framework of collaboration among SCRA, trade associations and academic institutions has helped the evolution of innovation in our Life Sciences industry. South Carolina’s history and current successes in the Advanced Manufacturing & Materials industry make this a logical target for innovation. Encouraging collaboration with existing manufacturing powerhouses and emerging companies provides an ecosystem for growth. Many Information Technology (IT) companies, both large and small, call South Carolina home. SCRA is participating in initiatives such as SC Cyber in order to develop and implement statewide strategies for this industry. These industry sectors align with the strengths of South Carolina’s workforce, institutional research and existing companies, and are the drivers of the Innovation Economy. It is when these industries intersect that there is the largest potential for innovation and economic growth.
Life ScienceS
Advanced Manufacturing & Materials
Information Technology
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Entrepreneurs
Mentoring
Investments
Supporting Early-Stage Companies
Whether a company is looking for the right CEO or developing a financial plan, our team works with entrepreneurs and startups to provide support at each step in the growth process.
After extensive due diligence, companies that have been accepted into the SC Launch Program as Client Companies may receive board-approved loans in the form of convertible notes to help achieve company milestones.
Funding SC Launch
HOw SC Launch WOrks
The Industry Partnership Fund (IPF) was established in 2006 under the Industry Partners Act. South Carolina taxpayers who contribute to the IPF are eligible for a 100% credit against South Carolina income taxes, insurance premium taxes and certain license fees. Through SCRA’s SC Launch Program, funds are invested in South Carolina startups through loans, grants and grant matching.
Early-stage, technology-based companies must submit an application to be considered for SC Launch support. After careful screening, companies that meet selection criteria become a Client Company, begin the mentorship process with a Regional Manager and others, and may become eligible for grants. Upon successful completion of a strict due diligence process, the company may be reviewed by the SC Launch Board for an investment in the form of a loan that may be converted to equity.
SC Launch Board The SC Launch Board of Directors, consisting of seven members representing South Carolina’s academic institutions and industry, has significant experience with entrepreneurial endeavors. 6|
Other Funding
The SC Launch Program provides access to additional funding sources such as SBIR/ STTR grant matching, Academic Startup Assistance Program Grants, Project Demonstration Funds and relocation assistance.
Networking & Marketing Support
SC Launch Client Companies have access to regional networking events, the Resource Partner Network and marketing support.
Entrepreneurs need advice, guidance and business resources to form and grow companies. SC Launch provided me with a network of support to advance my business. Jill Bossi Founder, Thrive GPO
SC Launch investment Timeline
Application
Company Review
Board Evaluation Due Diligence
Investment
Ongoing Support
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Academia
Enabling growth of research and commercialization
Support academic institution-affiliated startups and entrepreneurs
We needed a research facility to conduct federally-funded nanotech research. SCRA quickly provided a specialized lab in their Innovation Center with all the equipment required to move forward. Dr. Apparao Rao Director, Clemson’s Nanomaterials Center 8|
Create strategic collaboration among organizations across the state
Provide grant services for research, product demonstrations and prototyping
Offer shared infrastructure via Innovation Centers
Strategic Collaboration Agreement
Clemson University
SCRA, Medical University of South Carolina, University of South Carolina and Clemson University have signed a strategic collaboration agreement that creates a framework for technology-based economic development in South Carolina.
Comprehensive Teaching Universities Industry
Collaboration Team
Medical University of South Carolina
The collaboration focuses on four key areas that will drive success and build upon the state’s strengths: •
SC Technical College System
The agreement is aimed at aligning the state’s resources to accelerate the growth of the Innovation Economy. The academic community is the driver for increasing our state’s research capacity, which generates early-stage companies and, in turn, high-paying jobs.
SCRA
University of South Carolina
• • •
Increase research funding via multi-institutional grants and other funding vehicles Create and advance early-stage, technology companies Increase total capital investment Encourage public-private partnerships to grow industry
The SCRA-Academia Collaboration Team will maintain inventories of applicable programs, resources and facilities throughout the state’s academic institutions. It will also communicate with industry representatives to identify their needs and will monitor market trends to discover areas of growth and innovation in three industries of focus: Life Sciences; Advanced Manufacturing & Materials; and Information Technology.
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Industry
Connecting Industry to innovation
Facilitating Collaboration SCRA engages research institutions where many ground-breaking advances are discovered and nurtured. With input from industry, the research institutions can further develop the technologies for industrial applications. Our team engages with industry leaders to understand their needs that can be addressed through technology-based solutions. SCRA enlists our network of academia, entrepreneurs and other organizations to identify potential solutions and facilitate corresponding partnerships. 10 |
Support from SCRA was instrumental in my decision to form in South Carolina. Craig Walker Founder & CEO VidiStar
Their Story Zeriscope 12 Sovi 14 Boyd Cycling 16 Carbon Conversions 18 TerraStride 20 The McNair Center 22 Watt Family Innovation Center 24
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Life Sciences
Zeriscope
Information Technology Region: Coastal Type: Portfolio Company Academic Affiliation: MUSC Zeriscope is a Mobile Telemedicine Platform provider. The company has developed a cost-effective, portable telemedicine exam kit and HIPAA-compliant software platform that allows doctors to conduct real-time medical exams remotely, thus reducing the incidence of unwarranted or unnecessary emergency room visits or hospital readmissions. Telemedicine offers a broad range of common-sense benefits for patients, care givers and healthcare providers. Adoption has been slow in many communities and health care models due to the
complexity and costs associated with telemedicine platforms, software and implementation. The Zeriscope solution is positioned as a simple, affordable and easyto-adopt system that delivers the benefits of telemedicine quickly and with minimal up-front investment. The company has received funding from SC Launch that is enabling them to build out their software team, identify strategic partners, and develop smart marketing and sales initiatives.
Their Story | 13
Information Technology Region: Coastal Type: Landing Party Portfolio Company Co-founders Tom Evans and Trey Pringle have combined their UIX design experience, programming interface expertise and event promotion backgrounds to create a product for the growing concert and event industry.
Their Story 14 |
Their solution, Sovi, is an app that allows concert goers to discover events, buy tickets and get into the show in just two taps. Users can see all of the events in an area and are not limited to events provided by one ticket vendor or venue. Sovi has been used by fans to see over 200 artists in more than 100 venues.
Sovi chose South Carolina as their home in 2014 and has been an SC Launch Portfolio Company since 2016, when they received a $200,000 convertible note. “The funding from SC Launch has helped us to greatly bulk up our infrastructure and inventory on hand, which has led to increased gross revenues and net margins,” said Trey Pringle, Co-Founder. “We plan to begin hiring as a result of this growth in the beginning of 2017.”
Advanced Manufacturing & Materials Region: Upstate Type: Portfolio Company Boyd Cycling, a bike wheel manufacturing company, was borne out of a passion for cycling and 10 years of cycling design engineering. Boyd Johnson and his wife, Nicole, created the company in 2009 and today have over 6,000 customers worldwide. They also have stock racing wheels in more than 150 bike shops and employ ten people. The company plans to move into a larger facility. They were recently selected for SC Export Achievement. Wheels from Boyd Cycling are known for their innovative design.
They have been recognized as “world’s stiffest wheel,” and “best road wheels for climbing” by cycling publications. The shape of the rims, spacing of bearings and type of materials used in the wheels are all critical elements in the overall design. “SCRA has been so helpful in assisting us to the next level. The funds have been used for purchasing equipment, hiring employees and marketing support,” said Boyd Johnson.
Nicole Johnson, Director of Sales and Boyd Johnson, President and Design Engineer
Their Story | 17
Advanced Manufacturing & Materials
Region: Midlands Type: Portfolio Company
Mark Mauhar President and CEO of Carbon Conversions
Their Story 18 |
Carbon Conversions is an advanced materials company manufacturing various products from the reclamation, re-engineering, and repurposing of carbon fiber composites. Recycling provides companies a much needed avenue to dispose of excess carbon fiber, however, Carbon Conversions doesn’t see this as the end of the process. The company’s mission is to “close the loop” and create new applications and markets with the recycled products.
incentives were superior to other states and locations. Within the next five years Carbon Conversions plans to double the building footprint, increase the workload and employment. In December 2016, the company announced a portfolio investment from Hexcel Corporation. The strategic investment will create a collaborative partnership between the two companies to further advance the commercial adoption of reclaimed carbon fiber.
The company is located in Lake City, SC and chose this location due to close proximity to sources of materials, distribution networks and access to resources. The overall economic development
“SCRA came in at key times in the growth of this operation with capital and business expertise that allowed us to grow,” said Mark Mauhar, President and CEO.
Information Technology Region: Type:
Midlands Portfolio Company
TerraStride was founded by Lanford Holloway in 2012 in Columbia, SC. The company has two distinct product lines that both use their proprietary mapping technology to help people enjoy, manage and market land. Their HuntStand product is the number one hunting and land management app on the market. In 2016, the app surpassed 1,000,000 downloads, making it one of the most popular sports apps on the Apple and Google Stores. In addition, HuntStand was given the Editor’s Choice Award for best in-field smartphone hunting app by Outdoor Life Magazine.
Their other product, TerraStride Pro, is a market-leading land brokerage software. The platform helps brokers close more listings by improving how they map and market properties. Approximately $5 billion worth of land is listed in TerraStride Pro. TerraStride was accepted as an SC Launch Client Company in 2014 and received a $200,000 investment in 2015. “The support we received from SC Launch was incredibly valuable and played a substantial role in helping us take our products to market,” said Holloway.
Lanford Holloway Founder and CEO of Terrastride
Their Story | 21
McNair Center
for Aerospace Innovation & Research Region: Midlands Type: Academic Collaboration The McNair Center for Aerospace Innovation & Research is housed in SCRA’s USC Innovation Center in Columbia. Their research is focused on addressing the needs of the aerospace industry and the application of composite materials. The Center houses a production-level automated fiber placement machine. The McNair Center is continuously looking for partnerships and opportunities for collaboration. SCRA is a founding investor in the Center whose focus areas include steered fiber laminate design, structural composite part production and automation.
focused on the needs of the aerospace industry 22|
WATT FAMILY
INNOVATION CENTER
Region: Upstate Type: Academic Collaboration The Watt Family Innovation Center at Clemson University is a state-of-the-art facility that ecourages innovation. The unique facility uses cutting-edge technology to connect students and faculty to industry leaders across the globe in a real-time, high-definition collaborative environment. Every day, teams are utilizing the space to generate ideas and solve problems. The Center opened in 2015 and was created to enable ideas, foster connections and find solutions. SCRA is proud to be a Founding Innovation Partner. Our investment is supporting the development of a Collaborative Work Suite to enable cross-discipline research by connecting the Watt Center to SCRA’s USC Innovation Center.
Cutting edge technology to connect students | 25
Board of Trustees The Board of Trustees Are drawn from leading corporate and academic organizations and economic development institutions. Mr. Bryant Barnes President & CEO Comporium Communications
Mr. George W. Fletcher President Fletcher Engineering, LLC
Mr. James (Jay) Cuthbert Self, III President and CEO GMI Holding
Mr. William M. Blume, Jr. SCRA Board Chairman Senior Tax Partner Ernst & Young (ret)
The Honorable Bobby M. Hitt Secretary SC Department of Commerce
Dr. Keith Y. Shah Managing Director & Chief Strategy Officer FTI Consulting
Senator Hugh K. Leatherman, Sr. Chairman SC Finance Committee
Mr. David M. Smalls Campaign Manager and Political Aide
Dr. L. Fred Carter President Francis Marion University Mr. James E Clark President South Carolina State University Dr. James P. Clements President Clemson University Dr. David Cole President Medical University of South Carolina Mr. Peter G. Dunphy Finance Director Michelin North America, Inc.
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Mr. Tim Hofferth Chairman SC Commission on Higher Education
Mr. Douglas MacIntyre Former Chief Executive Officer Dun and Bradstreet Software Dr. Terry A. Michalske Laboratory Director Savannah River National Laboratory Mr. Ralph (Nick) A. Odom, Jr. VP, Environmental, Health & Safety Springs Industries, Inc. Dr. Harris Pastides President University of South Carolina Mr. W. Greg Ryberg Former CEO SC Retirement System Investment Commission
Dr. Todd Voss President Southern Wesleyan University Dr. Charles K. Watt Professor & Chairman Board of Advisors Clemson University & Watt Family Innovation Center Rep. Brian White Chairman House Ways & Means Committee Mr. Jonathan M. Zucker President The InterTech Group
Board of Trustees’ Executive Committee
The Executive Committee Is the voting arm of the Board, while the larger Board of Trustees has an advisory role and counsels the Executive Committee, ensuring that SCRA effectively executes its mission.
William M. Blume, Jr. SCRA Board Chairman
Dr. David Cole President Medical University of South Carolina
Dr. L. Fred Carter President Francis Marion University
Senator Hugh K. Leatherman, Sr. Chairman SC Finance Committee
Dr. Charles K. Watt Professor & Chairman Board of Advisors Clemson University & Watt Family Innovation Center
Dr. James P. Clements President Clemson University
Mr. Douglas MacIntyre Former CEO Dun & Bradstreet Software
Rep. Brian White Chairman House Ways & Means Committee
Dr. Harris Pastides President University of South Carolina
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Facilities
SCRA’s Innovation Centers offer state-of-the-art facilities for emerging companies and academic institutions. They provide wet labs, research facilities and collaboration spaces essential to advance technology as well as to grow and attract companies to South Carolina.
Applied Technologies Center Summerville, SC A 10-acre facility situated at the junction of Exit 199 off I-26 and Highway 17-A, the property houses SCRA employees. ATI, Volvo and Aeterna Zentaris are also headquartered in this facility.
MUSC Innovation Center Charleston, SC State-of-the-art equipment, including sub-zero freezers, distilled water on tap, washing machines for lab equipment and supplemental devices, are available to tenants in this facility.
Duke Energy Innovation Center Anderson, SC This is a LEED Certified, Gold Rated ‘green’ facility housing academic research and companies focused on areas such as advanced materials and information technology.
USC Innovation Center Columbia, SC This facility was designed to accommodate business offices and clean, nextgeneration manufacturing operations. USC’s McNair Center and EngenuitySC are co-located in this facility.
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