Energy Advancement Leadership Conference November 18 2004 Richard

Energy Advancement Leadership Conference November 18, 2004 Richard Amato Director, CEI

ATI Mission To launch great market leading companies that create wealth for our communities by proactively helping entrepreneurs in the technology sector achieve their business goals CEI is a program of the Austin Technology Incubator and IC 2 Institute at The University of Texas at Austin

IC 2 = Innovation, Creativity, and Capital A “think and do” research lab whose mission is to generate wealth, jobs, and shared prosperity Suite of activities that represents an “eco-system” for wealth creation: q Technology business incubator (ATI) in 1989 q Master’s degree in technology commercialization in 1996 q High-tech entrepreneurship and management education q High-tech support networks q “Knowledge workers” developed through e-learning q Development program for emerging regions

Austin Technology Incubator Founded in 1989 by Dr. George Kozmetsky as a non-profit UT-Austin, Chamber of Commerce and City were initial capital sponsors Operated by the IC 2 Institute at The University of Texas at Austin Located on the J. J. Pickle Research Campus at UT Austin with 30, 000 square feet of space 20 Companies Full-time staff employed by UT Austin

ATI’s Aggregate Results to Date • >$1. 5 B in revenues generated by ATI companies since 1989 • >$720 M in outside capital raised by ATI companies • >3, 000 direct jobs created by ATI companies • Five companies have gone public • • • Metrowerks Encore Orthopedics Concero DTM Corp. US Medical • 17 graduates have been acquired including • • Metrowerks by Motorola for $95 M Evity by BMC for $100 M Exterprise by Commerce. One for $78 M DTM Corp. by 3 D Systems Corp. for $45 M

Clean Energy Incubator NREL and SECO Realized: 1. Market need for business knowledge to commercialize viable clean energy technologies 2. Business incubators are able to focus on clean energy technologies • Partner with ATI (first incubator) 3. National Alliance of Clean Energy Business Incubators • 11 incubators in 9 states 4. Support from SECO and DOE • SECO grant to help fund foundation of CEI • DOE grant to continue development of Alliance CEI is a program of the Austin Technology Incubator and IC 2 Institute at The University of Texas at Austin

CEI is a program of the Austin Technology Incubator and IC 2 Institute at The University of Texas at Austin

CEI Companies e 60 Vision Wind. Kraft Inc. RSET Inc. Allied Energy Systems Power Tube Inc. Austin Biofuels CEI is a program of the Austin Technology Incubator and IC 2 Institute at The University of Texas at Austin

Business Development Value Chain Capitalize Grow Deploy Productize Innovate Research Entrepreneurs Corporate Research Groups The University of Texas • Develop relationship network • Build business plan • Acquire seed funding • Develop team • Acquire early customers • Provide turn-key infrastructure

The Challenge: Delivering a Strong Return on Taxpayer’s R&D Investment Great Technology Market Success

Additional programs • NREL Industry Growth Forums – – – • CEI Opportunity in Clean Energy Series – – – • 17 th Orlando, FL – October 18 -20, 2004 16 th Austin, TX – November 17 -19, 2003 15 th Albany, NY – October 29 -30, 2002 Investments in New Energy Technologies – May 13, 2003 Business Opportunities in Austin & Beyond – July 23, 2002 Commercialization of Clean Energy Technologies – April 18, 2002 ACE Initiative – – – “Enriching Economy and Environment: Making Central Texas the Center for Clean Energy” Report 2004 Clean Energy Economic Development Summit – April 27, 2004 Spring Networking Event – April 10 , 2003 Clean Energy Report Press Release & Event – November 12, 2002 Austin Clean Energy Bash – May 14, 2002 CEI is a program of the Austin Technology Incubator and IC 2 Institute at The University of Texas at Austin

What have we learned? In 2001 when CEI began, the very Technology successful ATI model was used as the framework for operation. However over the next three years, we learned that though the ATI model Incubator works very well for high-tech companies, the clean energy industry and the clean energy entrepreneurs require a different framework. • Profile of a clean energy start-up • • Technically-focused entrepreneurs Lack of business experience Capital intensive Long life cycle • Pipeline of companies • • Broad spectrum of company stages Variety of technologies – solar, wind, green products, energy efficiency Varying levels of commitment Emerging industry

CEI is a program of the Austin Technology Incubator and IC 2 Institute at The University of Texas at Austin

Giving clean energy companies the power to succeed! www. ic 2 -ati. org www. cleanenergyincubator. com