NMBW UNM September Insert

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ConnectEd

THE U N IV E R S I TY O F N E W MEXICO | ES TA B LIS HED 1889 WWW. UNM. EDU

Growing a Rainforest in N.M.

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INSIDE Making Headlines

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Arts & Culture

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Healthy Vision

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Business Matters

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Lobo Athletics

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Changing Worlds

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By UNM President Robert Frank and STC.UNM President and CEO, Lisa Kuuttila

Why are we talking about a rainforest in the desert? Because it actually provides the model we need to cultivate a fertile economic ecosystem. The University of New Mexico and STC.UNM, the technology commercialization arm for UNM, are part of an important ecosystem to grow and diversify our economy in New Mexico. The concept is characterized in a recent book called “The Rainforest: The Secret to Building the Next Silicon Valley,” in which authors and venture capitalists Victor Hwang and Greg Horowitt compare the rapid blossoming of Silicon Valley to the spontaneous sprouting conditions of the rainforest. This fragile, divergent environment does not control or plan the emergence of new species, but rather creates conditions that allow the ecosystem to spawn robust life forms that compete successfully in unimagined ways. They suggest that in a rainforest, “weeds” are nurtured to grow, and that some of these weeds become complex flowers that are valued. Likewise, Hwang and Horowitt argue that a community wishing to enhance innovation and new, unimagined products should foster operations like a rainforest – not controlling processes, but creating a fertile environment in which

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new “weeds” can sprout and grow into viable businesses. Human connectivity is the fertile ground for cultivating communities that enhance the melding of science and innovation into new business and economic opportunity. Their work is highly applicable to New Mexico, where we need to de-

velop knowledge businesses. Research universities and research hospitals are primary drivers in the emerging innovation economy. Across the nation, as jobs have evaporated in the manufacturing sector, new opportunities have developed in education, professional services and health care-related services.

The University of New Mexico, through STC.UNM, has spun off more than 60 companies based on research conducted at UNM, many of them located in New Mexico. Some of the companies are profiled in this issue. The companies have created hundreds of knowledge-based jobs for the state. Over the long term, the economic vitality of the state will be enhanced by these companies and will help to diversify our economy. We invite you to read about how UNM and STC.UNM are working to create an entrepreneurial ecosystem in New Mexico, which will result in a rainforest of spin-off companies.

STC, New Mexico Angels Partnership Encourages Economic Development Partnerships have been important to the success of STC.UNM’s mission to support UNM’s vital role in New Mexico’s economic development by transferring university inventions to the marketplace. STC develops close partnerships with UNM inventors to protect their valuable intellectual property and market it to companies, new and established, who see the potential to create new products for public benefit. STC also partners with innovation cohorts at the national labs to commercialize technologies that result from collaborations among UNM and lab researchers. One of the most important partners in helping to increase the flow of licensable UNM technologies is the New Mexico Angels. The NMA is a private membership organization of more than 76 accredited, individual investors who invest in technologies and companies

in New Mexico and the Southwest that are in an early stage of development and need initial funding. This seed funding is used to develop a new technology to its prototype stage or help a new company reach a level of growth that attracts the next phase of funding from venture or corporate investors. The STC/New Mexico Angels partnership is the result of a brainstorming session between STC President and CEO Lisa KuutChavez tila and New Mexico Angels President John Chavez. Kuuttila, a member of the Angels’ board since 2006, was looking for a way to get more UNM technologies with great commercialization potential in front of more investors. “I knew the NMA members had a great deal of en-

trepreneurial expertise, as well as investment capital, to help STC get more UNM technology businesses launched,” she said. She approached Chavez, an angel investor since 2003 and president of New Mexico Angels since 2008, with the idea of showcasing UNM’s most promising inventions. “Our partnership with STC allows us access to the latest technologies coming out of UNM and gives us the ability to create companies here in New Mexico,” Chavez said. In 2009, the STC/New Mexico Angels Technology Showcase was born. At the annual luncheon presentation to New Mexico Angel members, selected UNM technologies are presented by their inventors for seed funding. In 2011, the focus of the technology showcase changed to become a part of STC’s gap funding program. Gap funding is what technology transfer folks

call the funding void or gap where government funding ends and a researcher’s technology hasn’t advanced enough for private investors to step in. As a member of STC’s Gap Fund @ UNM committee, Chavez reviews submitted proposals from UNM faculty that have market applications and may be suitable for Angel funding. Inventors receive valuable mentoring in how to make a successful pitch from Angels who are experienced entrepreneurs and industry professionals with a variety of business, corporate and scientific backgrounds. Last year the New Mexico Angels reviewed four gap proposals and have created two start-up companies around two of the technologies: Synfolia and Tyrosine Pharma. Chavez estimated that the New Mexico Angels have helped 8-10 start-ups spun off of UNM technologies through investments, company creation and mentoring.

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