Batten Institute Annual Report 2013-14

BATTEN INSTITUTE for Entrepreneurship and Innovation Annual Report 2013–14

INSPIRED EDUCATION TRANSFORMATIVE RESEARCH ENERGIZED COMMUNITY

BATTEN INSTITUTE

ANNUAL REPORT 2013–14

Welcome Frank Batten, Sr., visionary co-founder of the Weather Channel, challenged Darden to achieve something extraordinary: “to become a preeminent educator and thought leader of entrepreneurship and innovation.” As we reflect on the 2014 academic year, we have surely made great strides toward fulfilling his bold vision and strengthening Darden’s foundation for the future.

Darden is now widely recognized for having one of the best entrepreneurship programs in the world, rated consistently among the top 10 and ranked No. 5 this year alone (Entrepreneur Magazine/Princeton Review). Moreover, we have assembled a collection of the finest scholars, educators, fellows, and professionals, whose research and knowledge are at the cutting-edge of entrepreneurship and innovation.

Sean D. Carr

This year also marked an important inflection point for Darden’s business incubator. Housed in the newly expanded W.L. Lyons Brown III i.Lab, the 2013–14 program supported the largest cohort of new ventures in Darden’s history: 25 ventures this year alone! In addition, by opening the program to aspiring entrepreneurs from the wider community, Darden made its most significant effort to elevate the entrepreneurial ecosystem at U.Va. and beyond.

These achievements and many others are presented in this annual report, and we hope you enjoy perusing its pages. We also hope the report demonstrates the innumerable ways in which the Batten Institute serves as a powerful catalyst for developing entrepreneurial, global, and responsible leaders who step forward to improve the world.

As we look to the future, we remain inspired by Frank Batten’s vision, and we will continue to extend our programs to promote inspired education, generate transformative research, and foster an energized community of entrepreneurs and innovators. We welcome you to join us on this exciting journey!

Michael Lenox

The Batten Institute serves as a powerful catalyst for developing entrepreneurial, global, and responsible leaders who step forward to improve the world.

Sincerely,

Sean D. Carr

Michael Lenox

Executive Director Batten Institute for Entrepreneurship & Innovation

Associate Dean and Academic Director Batten Institute for Entrepreneurship & Innovation

Assistant Professor of Business Administration Darden School of Business

Samuel L. Slover Professor of Business Darden School of Business

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History

The Batten Institute was created in 2000 through the visionary support of Frank Batten, Sr. (Col ’50), former chairman and CEO of Landmark Communications and co-founder of the Weather Channel, along with his children, Frank Batten, Jr. (MBA ’84) and Dorothy Neal Batten (MBA ’90). Previously known as the Batten Center for Entrepreneurial Leadership, the Batten Institute was charged with a mandate to challenge and enable Darden to be a preeminent educator and thought leader.

Today, the Batten Institute encompasses a worldclass research center, focused on academic scholarship, as well as Darden’s Center for Entrepreneurial Leadership and W.L. Lyons Brown III i.Lab at the University of Virginia, focused on student programs and the growth of our entrepreneurial ecosystem.

The activities and initiatives supported by these complementary units bring together scholars, students, alumni and business leaders, fostering a diverse and energetic community that supports the Institute’s mission to create knowledge and improve society.

Frank Batten, Sr. (1927–2009)

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Mission & Table of Contents The Batten Institute serves as a catalyst for developing and inspiring responsible entrepreneurial leaders and for advancing knowledge about the transformative power of entrepreneurship and innovation.* To fulfill this mission we pursue three high-impact objectives that serve the Darden School of Business, the University of Virginia, and the broader entrepreneurial ecosystem: Inspired Education

Cultivate the next generation of entrepreneurial leaders through rigorous academic and experiential programs

Transformative Research

Generate thought leadership in entrepreneurship and innovation through research projects of consequence to business and society

Energized Community

Foster a diverse and collaborative community of scholars, students, alumni and practitioners engaged in the study and pursuit of entrepreneurship and innovation

By the Numbers

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At a Glance

8

Inspired Education

10

Courses

12

Online Offerings

13

Scholarships

14

Workshops

15

Internships

15

Competitions

16

In Focus: W.L. Lyons Brown III i.Lab at the

18

University of Virginia

Transformative Research

22

Faculty

24

Fellows

25

Research Grants

26

Research Conference

26

Publications & Honors

27

Milstein Symposium

28

Innovators’ Roundtable

29

Journal of Business Venturing

29

In Focus: Solving Problems with Design

30

Thinking

Energized Community

32

E-Conference

34

Student Clubs

34

Alumni Startup Workspaces

35

iDEA Network

35

U.Va. and Regional Ecosystem

36

Virtual Communities

37

Media

37

In Focus: Darden–1776 Partnership Taps the

38

D.C. Start-up Scene

*Aligned with the broader mission statement of the Darden School

of Business: “The Darden School improves the world by developing and inspiring responsible leaders and by advancing knowledge.”

Financial Statements

40

FY 2013–14 Budget

41

Leadership

42

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By the Numbers 2013–14

70%

EIGHT Corporate sponsors

15 $1.4 6 MILLION MBAs enrolled in entrepreneurship & innovation courses

$175,000 Research grants

Entrepreneurs-inresidence

6

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Books, articles, papers, cases

Sponsored faculty

25 $90k New ventures in the i.Lab

Prizes for entrepreneurial competitions

$1M 37 Full-tuition MBA scholarships

21 No.5 MBA courses in entrepreneurship & innovation

Internships with startups and VCs

Rank for entrepreneurship (2014) B AT T E N I N S T I T U T E A N N U A L R E P O R T 2 014

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At a Glance 2013–14 Batten Venture Internship Program

U.Va. Entrepreneurship Cup Workshops

June–August 2013 —

September–October 2013 —

More on page 15

More on page 15

U.Va. Entrepreneurship Cup

U.Va. Tech Venture Fair

November 2013 —

November 2013

More on page 16

2013

June

July

August

September

E-Conference: Startup Now November 2013 — More on page 34

Design Thinking for Business Innovation Workshop November–December 2013 — More on page 15

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October

November

December

Innovators’ Roundtable April 2014 — More on page 29

Effectual De-Risking Competition

Darden Business Plan 2.0 Competition

February 2014 —

April 2014 —

More on page 16

January

More on page 16

February

March

April

May

June

1776 Partnership Launch (D.C.)

Darden-Cambridge (U.K.) Research Conference

March 2014 —

June 2014 —

More on page 35 & 38

2014

More on page 26

Venture Capital Bootcamp

Entrepreneurial Law Clinic

January 2014 —

March 2014 —

More on page 15

More on page 21

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INSPIRED EDUCATION 10

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Our philosophy is that “entrepreneurship� is about more than starting a new venture; it is a way of thinking and a set of skills for creating enduring value.

To that end, the Batten Institute supports a broad portfolio of educational programs intended to support and inspire the next generation of entrepreneurial leaders at Darden.

Courses Online Offerings Scholarships Workshops Internships Competitions InFocus: W.L. Lyons Brown III i.Lab at the University of Virginia

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Courses Darden offers nearly 40 electives in the areas of entrepreneurship and innovation, which are taken by nearly three-quarters of all Darden MBAs. Fall 2013 Course Offerings

Spring 2014 Course Offerings

GBUS 7609 Entrepreneurial Thinking GBUS 7613 Sustainability, Innovation

and Entrepreneurship GBUS 8060 Sustainable Innovation

and Entrepreneurship GBUS 8070 Sustainability in Depth:

Studies in Innovation GBUS 8210 Starting New Ventures GBUS 8290 Venture Capital GBUS 8301 Emerging Information

Technologies Seminar GBUS 8404 Innovating and Integrating

in Services GBUS 8435 Emerging Medical Technologies GBUS 8447 Innovation and Product Development GBUS 8453 Entrepreneurial Finance

and Private Equity GBUS 8459 Innovation and Design Experience GBUS 8478 Markets in Human Hope GBUS 8618 Technology Entrepreneurship GBUS 8700 Darden Venturing Project GBUS 8840 Leading Innovation GBUS 9330 Seminar in Entrepreneurship I GBUS 9350 Reading Seminar in

Entrepreneurship III

7108 Innovation, Entrepreneurship and Growth 7609 Entrepreneurial Thinking 7613 Sustainability, Innovation and Entrepreneurship 7614 The Adrenaline Innovation Project 7615 Develop an Entrepreneur’s Mindset 7618 Effectual Entrepreneurship 8060 Sustainable Innovation and Entrepreneurship 8070 Sustainability in Depth: Studies

in Innovation 8210 Starting New Ventures 8230 Growing the Smaller Enterprise 8306 Social Responsibility and Entrepreneurship 8427 Entrepreneur as Change Agent 8439 Leadership and Cultures of Trust

& Innovation 8454 Small Enterprise Finance 8459 Innovation and Design Experience 8469 Entrepreneurs Taking Action 8485 Markets in Human Hope 8487 Corporate Innovation & Design Experience 8488 Global Innovation and Technology Commercialization 8612 Managing Innovation and Product Development 8700 Darden Venturing Project 8840 Leading Innovation

Darden offers

37

entrepreneurship & innovation electives 12

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Online Offerings Platform:

Many of Darden’s online courses boast over

75,000 registrants Edward Hess Grow to Greatness: Part 1 Dates: Jan-Feb 2014 Duration: 5 weeks Registrants: 49,081 Grow to Greatness: Part 2 Dates: Mar-Apr 2014 Duration: 5 weeks Registrants: 28,831

Michael Lenox Foundations of Business Strategy Dates: Sept-Oct 2013 Duration: 6 weeks Registrants: 78,061 Dates: Jan-Mar 2014 Duration: 6 weeks Registrants: 75,034 Dates: Jun-Jul 2014 Duration: 6 weeks Registrants: 49,604

Jeanne Liedtka Design Thinking for Business Innovation Dates: Nov-Dec 2013 Duration: 5 weeks Registrants: 74,891

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Scholarships Each year the Batten Institute provides more than $1 million to support scholarships for MBA students who have an entrepreneurial or innovative orientation. In 2013-14, 10 full scholarships were awarded to members of the Class of 2015. Here are a few examples of Darden’s entrepreneurial talent:

Rachel Penny

Zach Mayo

Founder: Escape Estates d/b/a Cassimir Club (high-end vacation rental community)

Co-founder: RelishMBA (web-based MBA recruiting platform)

MBA ’15 Vancouver, WA

Rafe Steinhauer

MBA ’15 Chattanooga, TN

MBA, M.Ed. ’15 Chappaqua, NY

“I was fortunate to spend my “I joined the i.Lab Incubator in summer in Charlottesville as a 2014 as part of the RelishMBA member of the i.Lab between my team. Along with co-founder, first and second year, starting Sarah Rumbaugh (MBA ’15), we my own venture, Cassimir Club. are in the process of raising With the experience gained from capital to fund expansion of a Darden and the i.Lab, I am looking web-based MBA recruiting platforward to staying in Charlottesform and are planning to continue ville to pursue the growth of my full-time work on the business company.” after graduation.”

“I am helping an organization develop a five-week program in Amsterdam. When you put together a passionate and diverse group of people, provide a little coaching, and ask, ‘What should school for adults be?’ we can co-create experiences of personal meaning, impact and fun.”

Darden allocates more than

Without the Batten scholarship, I would not have had the confidence or financial flexibility to pursue something of interest to me immediately upon graduation. Darden, and the scholarship by extension, have had a huge impact on my life, and will continue to do so.

—Rafe Steinhauer, MBA, M.Ed. ’15

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$1M to MBA scholarships annually

10

total number of new scholarships awarded in 2013–14

Workshops U.Va. Entrepreneurship Cup Workshops

Design Thinking for Business Innovation (Coursera Q&A)

Presented by the Batten Institute in partnership with U.Va. Innovation Location: U.Va. Innovation, Open Grounds

Instructor: Jeanne Liedtka Location: W.L. Lyons III i.Lab at U.Va. 11 November–9 December 2013

Ideation and Team Building Instructor: Philippe Sommer, Darden 10 September 2013

Venture Capital Bootcamp

Telling and Selling Your Story Instructor: Kate Burke, Drama 17 September 2013

Instructors: Tim Meyers of Baker Tilly, John May of New Vantage Group Location: Cooley Godward, LLP, Reston VA 9–11 January 2014

Protecting Your Idea Instructor: Michael Straightiff, U.Va. Innovation 24 September 2013 Anatomy of a Pitch Instructor: David Touve, Mcintire 1 October 2013

Internships

21

total number of internships supported in 2013-14

The Batten Institute subsidizes summer internships for Darden students interested in working with a startup or a venture capital firm through the Batten Venture Internship Program. In 2014, 21 students were supported through this program with internships at the following ventures:

Apex Clean Energy, Inc. Arqspin AyuKurulush Bessemer Venture Partners Caribe Juice LLC Cavion Entytle, Inc. GNIP Hungry Flatts Vineyards & Distillery

KiraKira MobileWorks New City Capital Project Cavalier PsiKick RealMy Sirin Mobile Technologies SoapBox Supreme Energy VinConnect WillowTree Apps, Inc.

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Competitions With over $90,000 in entrepreneurial funds awarded annually, Darden provides MBA students multiple opportunities to pitch their business ideas to investors, peers, faculty, alumni, business leaders, and the broader U.Va. entrepreneurial ecosystem.

U.Va. Entrepreneurship Cup

Effectual De-Risking Competition

22 November 2013 Location: Nau Hall, University of Virginia

18 February 2014 Location: Darden School of Business Based on the principles of effectuation, this event teaches students to develop business concepts with self-selected stakeholders while reducing the risks associated with launching their new business; $5,000 awarded in total, $3,000 for first prize.

University-wide business concept competition with $40,000 awarded in total, $20,000 for first prize. Tracks include: Consumer Goods and Services/B2B; Medical Technologies and Health care; Social Entrepreneurship; and Technology, Media and Communications.

Winners

1

RealMy

Winners

(online real-estate brokerage) Tom Barbour (MBA ’15)

1

Chitenges 4 Change

2

RelishMBA

2

Notivibe

3

Escape Estates d/b/a Cassimir Club

(reusable and hygienic sanitary pads) Batten School for Leadership and Public Policy

(hand-washing compliance system) School of Engineering and Applied Science

(MBA networking platform) Sarah Rumbaugh (MBA ’15), Zach Mayo (MBA ’15)

(high-end vacation rental community) Rachel Penny (MBA ’15)

Honorable Mention

LAMARCA

(crowdfunded, premium fashion platform) Darden School of Business

MiniCell Therapeutics

(modular chassis for drug delivery, environmental remediation and vaccine development) U.Va. Health System

Darden awards more than

$90,000 in entrepreneurial funds every year

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Darden Business Plan 2.0 Competition

Strategic Competition Initiative

17 April 2014

The Batten Institute provides funding to sponsor student teams participating in strategic competitions in the areas of global leadership, entrepreneurship and innovation, sustainability, ethics, and diversity.

In 2013–14, Darden teams participated in the following events around the country:

Open to all U.Va. students, this competition features student pitches that demonstrate the value of the business, capturing the elements of a business plan in a high-impact PowerPoint, video and executive summary-based format; $20,000 awarded in total, $10,000 for first prize.

College Park, Maryland Ross Rosenstein (JD/MBA ’16), Ryan Conner (JD ’13)

SXSW Business Plan Competition Austin, Texas Monte Jones (MBA ’14)

Charlotte Venture Challenge

Winners

1

Venture Capital Investment Competition

VOTER’S CHOICE

Tara Raj and Garrett Allen (COM ’16)

Charlotte, North Carolina • RelishMBA, Sarah Rumbaugh (MBA ’15); • PhoodE, Alex Becker (MBA ’14) • LAMARCA, Anika Brown (DMBA ’14), Sarah Sanchez (MBA ’14)

Baylor New Ventures Competition

2

LAMARCA

Sarah Sanchez (MBA ’14) Anika Brown (MBA ’14)

2

RelishMBA (tied) Sarah Rumbaugh (MBA ’15), Zach Mayo (MBA ’15)

3

The Wire ($500)

Waco, Texas • LAMARCA, Anika Brown (MBA ’14), Sarah Sanchez (MBA ’14) • ProVazo, Peter Neems (MBA ’14)

Annie Medaglia (MBA ’15)

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IN FOCUS

W.L. Lyons Brown III i.Lab at the University of Virginia The W.L. Lyons Brown III i.Lab provides a nexus for entrepreneurship education and venture creation. Its mission is to foster high-impact collaboration across disciplines, schools and ways of thinking. The i.Lab’s programs offer coaching, courses, and incubation for students, faculty, and local community members. The i.Lab was first launched by the Batten Institute in 2010 and later expanded substantially in 2013 through the enthusiastic support of W. L. Lyons Brown III and other generous sponsors. The i.Lab is located at the Darden School of Business and is operated by Darden’s Batten Institute.

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W.L. Lyons Brown III (U.Va. ’82, Darden ’87) is the founder and chief executive officer at Altamar Brands, LLC, a distiller and importer of rare, craft spirits.

Previously he spent 15 years in his family business at Brown-Forman (Jack Daniel’s, Southern Comfort), where he was marketing director for Europe and director of sales for the United States before retiring to pursue entrepreneurship. He is a trustee of the Darden School Foundation and a member of the advisory board for Darden’s Batten Institute for Entrepreneurship and Innovation. He is also an Entrepreneur-in-Residence for the i.Lab at U.Va. and at the A.B. Freeman School of Business at Tulane University, where he teaches cases annually.

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IN FOCUS i.Lab Incubator The i.Lab is home to the largest incubator program in Darden’s history. In 2014 the Incubator supported 25 ventures, including seven from the wider community. The program continues to evolve, offering workshops, speakers, pitch nights and other activities that enrich the Darden ecosystem. More than 40 percent of ventures incubated at Darden remain in business five years out, and several have achieved national and international recognition.

2013–14 i.Lab Incubator Ventures

Adapdif

(instructional technology platform) Mindy Morgan (Curry Ph.D. ’15), Caner Uguz (Curry Ph.D. ’14)

GigDog

(nontoxic soaps and cleaners) Kelly Love, community

Coverplay Audio

(products to enhance tablet listening experience) David Marriott (MBA ’14)

Smorgus

Open Form Foundation

Tom Tom Founders

Performance Diagnostics

Valto Grill

(healthy recipe platform) Kyle Simmons (MBA ’14)

(online discussion platform) Matt McCauley (MBA ’14)

(streaming interactive internet radio station) J.R. Gentle, community

Hungry Flats

Branch Basics

Nuduro

(resume development platform) Festival Stuart Templeton and Thomas (innovation and ideas festival) Hurt, community Paul Beyer, community

(small batch, vertically integrated craft distillery) Monte Jones (MBA ’14)

InSof

(accounting and inventory management) Ayush Bharti (MBA ’14)

(advanced body-imaging technology) Erik Breuhaus (MBA ’14)

(wood-fired grills) Alex Leff, community

Wolfie’s Way Elegant Solutions

(product development firm) Michael Michon (SEAS ’12), Adarsh Ramakrishman (SEAS ’12)

Foodio

(restaurant ordering app) Rory Stolzenberg (U.Va. ’13), D.J. Collier (U.Va. ’13)

Leftover Luxuries

(high-end consignment) Wendi Smith, community

(food condiments) Nathan West and Sean Wallace, community

XMT Solutions d/b/a Mobell Muscle

ProVazo

(blood-sampling technology) Peter Neems (MBA ’14), Andrew Andrae, Timothy Higgins

(mobile barbell system) Michael Humenansky (MBA ’14, Ross Rosenstein (JD/MBA ’16)

(communications platform) Joyce Smaragdis, U.Va. staff

(crude oil trucking company) Stefan Bozik (MBA ’14)

Sana Study Nouri

(organic energy bars) Veneka Chagwedera (MBA ’13)

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(Angie’s List for dog owners): Catherine Tarasoff (MBA ’13)

(food services operations platform) Alex Becker (MBA ’14)

MadHatter Foods

NewsMuze Frogmen Logistics

PhoodE

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(on-demand tutoring service) Christine Mahoney, faculty, Batten School of Leadership & Public Policy

YOLOCALS

(local experiences platform) Kenny Schulman (MBA ’14)

Entrepreneurs-in-Residence

Entrepreneurial Law Clinic

In 2014 the Batten Institute inaugurated the Entrepreneur-in-Residence program, which offers seasoned entrepreneurs and other professionals an opportunity to provide mentoring and counseling to entrepreneurial students and participants in the i.Lab Incubator program. We are deeply grateful to the following EIRs who volunteered countless hours and their prodigious talent to supporting our entrepreneurial community:

U.Va. Law students, under the supervision of a course instructor and supervisor, work with i.Lab entrepreneurs who are starting new companies. The law students take a lead role in working with the entrepreneurs, including conducting interviews, performing research, providing a legal plan for each business, identifying documents to be drafted and drafting documents.

W. L. Lyons Brown III

i.Lab Faculty Advisory Council

Frederick Kulow, Jr.

The i.Lab has an advisory council comprised of faculty from 11 schools at U.Va. and the office of U.Va. Innovation. The FAC provides counsel for all the programs and activities that could leverage the i.Lab for the benefit of the University’s entrepreneurial ecosystem. In 2013–14, the i.Lab FAC included:

Senior Entrepreneur-in-Residence

Senior Entrepreneur-in-Residence Anselmo Canfora, Associate Professor, School of Architecture

Evan Edwards

Entrepreneur-in-Residence

W. Bernard Carlson, Professor and Chair, Engineering & Society, School of Engineering & Applied Science (i.Lab FAC Chair) Donna Klepper, Director of Regional Outreach, School of Continuing & Professional Studies Lianne Landers, U.Va. Innovation, Office of the Vice President for Research

John Stacey

John Lazo, Professor and Associate Dean for Basic Research, School of Medicine

Entrepreneur-in-Residence Michael Lenox, Professor and Associate Dean, Innovation Programs, Darden School of Business Christine Mahoney, Assistant Professor of Public Policy & Politics, Batten School of Leadership & Public Policy

Dana Goldsmith

Entrepreneur-in-Residence

Karen Rose, Associate Professor of Nursing, School of Nursing Leonard Schoppa, Associate Dean for Social Sciences, College of Arts & Sciences

Robert Tobey

Entrepreneur-in-Residence

Justin Thompson, Director of Innovations & Outreach, Curry School of Education David Touve, Assistant Professor and Director, Galant Center for Entrepreneurship, McIntire School of Commerce Andrew Vollmer, Professor and Director, John W. Glynn, Jr. Law & Business Program, School of Law

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TRANSFORMATIVE RESEARCH

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At the heart of the Batten Institute’s activities is the pursuit of cutting-edge entrepreneurship and innovation research.

Through our Center for Entrepreneurial Studies, researchers affiliated with the Batten Institute have produced more than 300 peer-reviewed and practitioner-oriented articles, teaching materials, case studies and books.

Faculty Fellows Research Grants Research Conference Publications & Honors Milstein Symposium Innovators’ Roundtable Journal of Business Venturing In Focus: Solving Problems with Design Thinking

24 25 26 26 27 28 29 29 30

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Faculty Each year the Batten Institute allocates over $1 million to sponsor Darden faculty whose teaching and scholarship predominantly address topics in entrepreneurship and innovation. In 2013–14, Batten-sponsored faculty at Darden included:

Raul O. Chao Associate Professor of Business Administration Areas of expertise: innovation, new product development, R&D portfolio management, organization design and incentives, complex adaptive systems

Gregory B. Fairchild E. Thayer Bigelow Associate Professor of Business Administration Areas of expertise: entrepreneurship, business strategy, business ethics, leadership

Edward D. Hess Professor of Business Administration and Batten Executive-in-Residence Areas of expertise: organic growth and innovation strategies, systems and processes, learning cultures, systems and processes, high performance organizations, and values-based leadership

In 2013–14, the Batten Institute sponsored

Michael Lenox Samuel L. Slover Research Professor of Business, Associate Dean for Innovation Programs; Academic Director of the Batten Institute for Entrepreneurship and Innovation Areas of expertise: business strategy, innovation & entrepreneurship, corporate venture capital, corporate environmental sustainability

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Saras D. Sarasvathy Isidore Horween Research Professor of Business Administration Areas of expertise: entrepreneurship, cognitive science, behavioral economics

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Darden faculty members

Fellows The prestigious Batten Fellows program brings prominent thought leaders to engage and collaborate on significant topics in entrepreneurship and innovation. Since 2001, more than 65 individuals have been named Batten Fellows, including such luminaries as Richard Shelton (Nobel Prize winner in economics), Malcolm Gladwell (best-selling author of Blink and The Tipping Point) and Jim Collins (best-selling author of Good to Great).

Our Batten Fellows for the 2013–14 academic year were:

Rashedur Chowdhury Lecturer, University College Dublin Project:

“Toward a Theory of Stakeholder Entrepreneurship”

Yael Hochberg Assistant Professor, Northwestern University, Kellogg School of Management Project:

“U.S. Seed Accelerator Ranking Project and Database Creation”

Daniel Forbes Associate Professor, University of Minnesota Carlson School of Management

Project:

“Exploring the Ethics of Entrepreneurial Work”

George Geis Professor, Adjunct Professor, UCLA Anderson School of Management Project:

“Semi-Organic Growth:Tactics and Strategies Behind Google’s Success” (Wiley, forthcoming 2015)

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Research Grants Each year the Batten Institute solicits proposals from any U.Va. faculty member pursuing rigorous and relevant research in entrepreneurship and innovation. The following scholarly projects were awarded support in 2013–14: “Entrepreneurship and the Ambicultural Orientation in Taiwan”

“Project QUID (Qualitative, Useful and Interesting Data)”

“Intelliject: A Case Study of a Successful Entrepreneurial Venture”

“Budgeting for Science and Innovation: A Comparison of the United States, the European Union and Japan”

Ming-Jer Chen Leslie E. Grayson Professor of Business, Darden School of Business

Michael E. Gorman Professor, Engineering & Society, School of Engineering & Applied Science

Saras D. Sarasvathy Isidore Horween Research Professor of Business Administration, Darden School of Business

James Savage Professor, Department of Politics, College of Arts & Sciences

“The Conundrum of Operational Excellence and Innovation” “The Hex of Radical Innovation in Edward D. Hess Corporate Entrepreneurship and New Professor of Business Administration and Batten Ventures” Executive-in-Residence, Darden School of Business

“Design Thinking for Innovation: An Examination of the Efficacy of its Tools and Processes”

Jeanne M. Liedtka United Technologies Corporation Professor of Business Administration, Darden School of Business

“Do General Managerial Skills Spur Innovation?”

Pedro Matos Associate Professor of Business Administration, Darden School of Business

“Intellectual Property Rights as International Trade Protection”

Sonal S. Pandya Associate Professor, Department of Politics, College of Arts & Sciences

Thomas J. Steenburgh Paul M. Hammaker Professor, Darden School of Business

In 2013–14, the Batten Institute awarded

9

entrepreneurship & innovation research grants

Research Conference The Darden-Cambridge Judge Entrepreneurship and Innovation Research Conference, hosted in partnership with the Cambridge Judge School of Business, took place in June 2014 at the University of Cambridge, United Kingdom. More than 74 scholars representing over 60 different institutions from 20 countries participated in two days of discussion about cutting-edge issues of entrepreneurship, technology and innovation.

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Publications & Honors Books SolvIng ProblemS wITh DeSIgn ThInkIng stories of what works

Recognition Solving Problems With Design Thinking: Ten Stories of What Works, Liedtka, J., King, A. and Bennett, K. (2013), Columbia Business Press, New York.

Jeanne Liedtka, andReW kinG and keVin Bennett

The Strategist’s Toolkit, Lenox, M. and Harris, J. (2013), Darden Business Publishing, Charlottesville, Va.

Saras Sarasvathy, awarded Honorary Doctor of Humane Letters, Babson College, 2013.

Raul Chao, elected president, Product Innovation and Technology Management, Production and Operations Management Society.

Saras D. Sarasvathy’s and Sankaran Venkataraman’s paper “Entrepreneurship as Method: Open Questions for an Entrepreneurial Future,” Entrepreneurship Theory and Practice (2011), was one of the top 10 most-cited papers in 2013.

Articles Incentives in a Stage Gate Process (2014), Chao, R. O., Lichtendahl, K. C. and Grushka Cockayne, Y., Production and Operations Management, 23(8), 1286-1298.

Cases HemoShear, LLC: Series C Round Financing, Chaplinsky, S. and Erdman, A., F-1703 (October 2013).

Flex Technology, Grushka-Cockayne, Y., Carraway, R. and Sorenson, T., QA-0811 (February 2014).

Southern Bancorp, Inc.: Reviving the Rural Economy Through Financial Products and Community Involvement, Fairchild, G. and Glinska, M., ENT-0203 (June 2014).

Citizen Potawatomi Community Development Corporation: Financial Inclusion in Indian Country, Fairchild, G. and Glinska, M., ENT-0202 (June 2014).

Tolerance for Failure and Incentives for Collaborative Innovation (2014), Hutchison Krupat, J. and Chao, R. O., Production and Operations Management, 23(8), 1265-1285.

Exploring the Socio-Cultural Drivers of De Novo versus De Alio Entry in Emerging Industries (2013), York, J. and Lenox, M. (2013), Strategic Management Journal.

A Skeptic’s Guide to 3D Printing (2013), Laseter, T. and HutchisonKrupat, J., strategy+business.

Batten Briefings Distributed to scholars, practitioners and deans of accredited business schools worldwide, Batten Briefings is a regular series communicating the latest findings from Institute-sponsored research for a broad audience.

B AT TE N B R I E F I N G IMPROVING THE WORLD THROUGH ENTREPRENEURSHIP AND INNOVATION

SEP 2013

Managing Your Innovation Portfolio INNOVATORS' ROUNDTABLE REPORT, SPRING 2013. CHARLOTTESVILLE, VIRGINIA.

Managing Your Innovation Portfolio (September 2013), Glinska, M., Batten Briefing: Innovators’ Roundtable Series.

THE IMPORTANCE OF PORTFOLIO MANAGEMENT

Working Papers

Any company engaged in new-product development (NPD) faces a series of high-

contributor

stakes decisions—which ideas to pursue, how many to keep in the pipeline, and how to

Malgorzata Glinska Senior Researcher, Batten Institute glinskam@darden.virginia.edu

allocate scarce innovation dollars.

Portfolio management, therefore, is critical to successful NPD. It is about resource

allocation—how a company invests its capital and people. It is also about project selection—choosing which projects to invest in and ensuring that there is a pipeline of big

new-product winners. And, most significantly, portfolio management is about strategy.1 Executives find that innovation portfolio management is helping them to: • • • • 1

Cooper, R.G., Edgett, S.J., and Kleinschmidt, E.J.

2000. “New Problems, New Solutions: Making Portfolio Management More Effective.” Research Technology

• • •

Management.

2

Collective Action and the Financing of Innovation: Evidence from Crowdfunding (2014), Carr, S., Darden Business School Working Paper No. 2450510

•

Ibid.

Maximize their returns on R&D spending

Maintain their company’s competitive position Allocate scarce resources

Create a link between project selection and business strategy Achieve a stronger focus

Achieve the right mix of projects

Communicate project priorities both vertically and horizontally within the organization

Provide greater objectivity in project selection 2

INNOVATORS’ ROUNDTABLE REPORT

B AT TE N B R I E F I N G IMPROVING THE WORLD THROUGH ENTREPRENEURSHIP AND INNOVATION

DEC 2013

Unleashing Innovation:

AFTER THE LIGHTBULB MOMENT, HARD WORK Like miniskirts and platform shoes, innovation initiatives have swung in and out of

Antecedents of Entrepreneurial Decision-Making: Prediction and Control Oriented Strategies (2014), Kuechle, G., Boulu-Reshef, B. and Carr, S., Darden Business School Working Paper No. 2431953

fashion. But judging by recent headlines such as “Less Innovation, More Inequality,”1

contributor

“Is Innovation Leading to a New Age of Productivity in the U.S.?”2 and “Persistence,

Malgorzata Glinska Senior Researcher, Batten Institute glinskam@darden.virginia.edu

Innovation, Save a Starving Owl,”3 not only is innovation in vogue again, it is viewed

as a silver bullet for a myriad of today’s problems.

Successful innovation has certainly been a cure for stagnant growth. In once mature industries, such as consumer electronics, innovation has led to explosive sales. No wonder that executives are desperate to unlock its secrets. But as recent global studies attest,

CONTRARY TO THE ROMANTIC INNOVATION MYTH, WHICH GLORIFIES A LONE INVENTOR WITH A SUDDEN FLASH OF INSIGHT, INNOVATION IS A TEAM SPORT.”

that’s not easy. Despite increased investment in innovation, only 18% of executives

from more than 500 companies in France, the U.K. and the U.S. surveyed by Accenture

Unleashing Innovation: After the Lightbulb Moment, Hard Work (December 2013), Glinska, M., Batten Briefing: Innovators’ Roundtable Series.

believe their company’s innovation strategy delivers a competitive advantage.4

Contrary to the romantic innovation myth, which glorifies a lone inventor with a

sudden flash of insight, innovation is a team sport. It's about turning a brilliant idea

into a commercially viable product that people will buy. And that requires the focused effort of many people working together as well as formal methodologies and business processes that need to be systematically reinvented for speed and efficiency.

This Batten Briefing sheds light on the hard work that comes after “the lightbulb 1

Phelps, E.S. 2013. “Less Innovation, More Inequal-

ity.” The New York Times.

2

Chandra, S., Miller, R. and Burrows, P. 2013. “Is

Innovation Leading to a New Age of Productivity in the U.S.?” Bloomberg BusinessWeek.

3

Jouvenal, J. 2012. “Persistence, Innovation, Save a

Starving Owl.” The Washington Post.

4

Koetzier, W. and Alon, A. 2013. “Why ‘Low-Risk’

Innovation Is Costly: Overcoming the Perils of Renovation and Invention.” Accenture.

moment.” It considers the challenge of exploiting the potential of existing innova-

tions while simultaneously exploring the possibilities for breakthrough growth. It also discusses the need to engage customers in the innovation process in order to improve the fit between offerings and customer needs and speed up the development of new

products. Because one of the most critical aspects of collaboration with customers is

the creation and use of intellectual property, this Briefing discusses the challenges of

managing IP. And last but not least, there’s no innovation without mistakes and false

starts; that’s why, as this Briefing notes, it’s crucial to create a culture where employees are not afraid to experiment and fail.

INNOVATORS' ROUNDTABLE REPORT

B AT TE N B R I E F I N G IMPROVING THE WORLD THROUGH ENTREPRENEURSHIP AND INNOVATION

APR 2014

Entrepreneurship and the Middle Class: CAN STARTUPS SAVE THE AMERICAN DREAM?

A Research Briefing for the Howard P. Milstein Symposium: Ideas for a New American Century Presented by the University of Virginia’s Miller Center in partnership with the Batten Institute for Entrepreneurship and Innovation, University of Virginia Darden School of Business

ABOUT THE MILSTEIN SYMPOSIUM The University of Virginia’s Miller Center launched the Howard P. Milstein Symposium: Ideas for a New American Century in September 2013. This five-year initiative convenes distinguished stakeholders and eminent scholars to advance innovative, non-partisan, action-oriented ideas, grounded in history, to help rebuild the American Dream. The Miller Center will organize three Milstein commissions each year.

IN BRIEF America has a middle-class jobs problem. Over the past thirty years, jobs paying

middle-class salaries—that is, occupations paying within 50 percent of median earn-

ings—have been disappearing, at least relative to the high-wage and low-wage jobs on

the pay scale. Moreover, this declining trend has occurred as the median wage itself has

stagnated. In the wake of the Great Recession and after the worst decade of job growth in over 50 years, the U.S. is left with an alarming middle-class jobs gap.1

The 2013-14 season of the Milstein Symposium seeks to address this critical employment challenge by fostering thoughtful conversation and productive dialogue about how to create and sustain the jobs of the future. The next commission in this series,

which convenes May 12-13, will focus on whether and how entrepreneurs and entrepreneurship can restart the engine of middle-class job creation.

This Batten Briefing offers a brief overview of the issues relevant for this discus-

Entrepreneurship and the Middle Class: Can Startups Save the American Dream? (April 2014), Carr, S. and Lenox, M., A Batten Briefing for the Howard P. Milstein Symposium: Ideas for a New American Century.

sion, beginning with a picture of middle-class employment, the effects of recession lead scholars

Sean Carr Executive Director, Batten Institute, Assistant Professor of Business Administration carrs@darden.virginia.edu

and recovery on that sector, and a summary of the causes for the “hollowing-out” of middle-class jobs. The second part of the Briefing explores the job-creating poten-

tial for entrepreneurship, including a profile of today’s entrepreneurs, and concludes

with potential policy levers that may motivate entrepreneurial activities that generate middle-class opportunities.

Michael Lenox Samuel L. Slover Research Professor of Business, Academic Director and Associate Dean, Batten Institute, lenoxm@darden.virginia.edu

SPECIAL ISSUE

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27

Milstein Symposium The Batten Institute joined with U.Va.’s Miller Center for an actionoriented symposium about how entrepreneurship can play a role in middle-class job growth. Funding for the symposium was provided by philanthropist, business and civic leader Howard P. Milstein.

Can Startups Save the American Dream?

The Miller CenTer • UniversiTy of virginia

Commission Co-Chairs Steve Case, Chairman and CEO, Revolution LLC Carly Fiorina, former Chairman and CEO, Hewlett-Packard in PaRtnERSHiP witH

Photo by Tom Cogill

Additional Commissioners

Milstein Symposium co-chairs:

Steve Case Carly Fiorina chairman, Startup America Partnership; co-chair, National Advisory Council on Innovation and Entrepreneurship; founder and former CEO of AOL

president, Carly Fiorina Enterprises; former chairman and CEO, Hewlett-Packard

Michael Lenox, Darden School of Business (co-lead scholar) Aaron “Ronnie” Chatterji, Duke University’s Fuqua School of Business; former senior economist, White House Council of Economic Advisers James Douglas, former governor of Vermont, 2003-2011 Jen Medbery, founder, Kickboard Lenny Mendonca, entrepreneur and director emeritus, McKinsey & Company Ross Baird, executive director, Village Capital Warren Thompson, president and chairman, Thompson Hospitality Services Brian Meece, CEO, RocketHub

The Miller Center, University of Virginia 12 May 2014

Sean Carr, Darden School of Business (co-lead scholar) Karen Mills, senior fellow, Harvard Business School; former administrator, U.S. Small Business Administration Gerald L. Baliles, executive director, Miller Center Maya MacGuineas, president, Committee for a Responsible Federal Budget Amy Cosper, vice president and editor-in-chief, Entrepreneur magazine (not pictured)

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Innovators’ Roundtable Each year the Batten Institute convenes senior innovation executives from eight to 10 leading firms for day-long discussions about best practices in innovation. This has become a high-impact engagement for Darden faculty, with premier corporate partners.

“Innovation in the Age of Smart Machines: People, Process and the Power of Technology” 17 April 2013, in partnership with the Thomas Jefferson Foundation Location: Robert H. Smith Center at Montalto, Thomas Jefferson Foundation, Charlottesville, Va.

Participants:

Journal of Business Venturing The Batten Institute supports the Journal of Business Venturing, the premier scholarly journal devoted to entrepreneurship and innovation. JBV is ranked by the Social Science Citation Index as one of the world’s most influential management journals. From 1995 to 2009, Darden Professor S. Venkataraman served as the JBV’s editor-in-chief; the current managing editor is Darden researcher Sarasa Subramony.

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29

IN FOCUS

Darden Professor Jeanne Liedtka discusses designthinking with visitors from King Fahd University of Petroleum and Minerals, Saudi Arabia.

Solving Problems with Design Thinking A new book by Darden professor Jeanne Liedtka, Batten Institute researcher Andrew King, and Darden alumnus Kevin Bennett (MBA ’12) shows how ordinary managers can use the approaches of designers to address business, organizational, and civic issues.

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Andrew King, co-author and Batten Senior Researcher

The process starts with a deep exploration of people’s current experience, using ethnography and other insight-generating tools; it continues with the development of possibilities that can be combined into a coherent concept; and it culminates in the testing of new concepts with actual users. In its emphasis on action rather than analysis, and on treating ideas as hypotheses to be tested not with existing data but with information gathered in early forays into the marketplace, the approach is a radical departure from what goes on in most organizations. But as the variety of stories in the book suggests, the applications of the approach are limited only by managers’ appetite for experimentation.

“What we saw in so many stories is that design thinking brings a systems perspective to problem solving,” Lietdka says. “The managers were willing to step outside traditional, narrowly defined areas of expertise in order to look at the broader system and the interactions within it. The result was often a higher-order solution.” 3M, for instance, used design thinking to create new ways for its sales force to engage B2B. Toyota used it to revamp its customer contact center, involving not just business leaders but the reps themselves. The city of Dublin used it to engage citizens in renewing urban neighborhoods. Intuit didn’t just apply design thinking to a discrete project; the company scaled the approach throughout the company, embedding it as a core competence among all employees.

What we saw in so many of the stories is that design thinking brings a systems perspective to problem solving.

W

hat do you get when managers join forces with designers?

You get a group of business strategists who come up with a metaphor that makes a new strategy feel real and meaningful.

You get a city that finds opportunities for revitalization by drawing on its citizens’ creative energy.

And a meal delivery service for the elderly that transforms itself by considering the needs not just of clients but of the employees preparing the food. In short, you get a different kind of conversation that can yield unexpected solutions to thorny problems.

In Solving Problems with Design Thinking: Ten Stories of What Works (Columbia Business School Publishing, 2013), authors Liedtka, King, and Bennett share the stories of managers in a variety of organizations using the creative problem-solving process known as design thinking. “Despite popular misconceptions,” the authors write, “innate genius isn’t the only way to solve business problems creatively. Those of us who can’t part the waters need instead to build a bridge to take us from current reality to a new future.”

Design thinking, they write, is a way to build that bridge.

Take the story of The Good Kitchen, a subsidized meal delivery service for the elderly in Denmark, which partnered with a design firm to improve its offering. The project could have been limited to tweaking the menu, but it turned into a much more comprehensive effort to understand the needs and desires of the elderly clients and of the people working in the kitchen. “Nutritionists and medical professionals were certainly involved,” Liedtka says, “but their contributions were part of a larger, transformative solution that also reflected the selfimage of the clients and the employees. Traditional expertise couldn’t get at the emotional piece—it took ethnography to develop that deep understanding.”

A story that stands out for her was about a consortium of French financial services institutions—many of them head-to-head competitors—that used design tools to explore their customers’ experiences with banking and money. “So many businesses are caught up in what’s objective and quantifiable, but when managers see what design thinking makes possible, they get caught up in it. And that’s because it speaks to something very human.”

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31

ENERGIZED COMMUNITY 32

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The Batten Institute supports a vast network of energetic, entrepreneurial leaders. We do so by encouraging programs, events and other forums that stimulate collaboration and engage the broader Darden, U.Va., U.S., and international communities around entrepreneurship and innovation.

E-Conference Student Clubs Alumni Startup Workspaces iDEA Network U.Va. and Regional Ecosystem Virtual Communities Media In Focus: Darden–1776 Partnership Taps the D.C. Start-up Scene

34 34 35 35 36 37 37 38

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E-Conference

8 November 2013

Darden’s E-Conference is an annual event for students, alumni, investors, entrepreneurs and community members. The two-day program, organized by the Entrepreneurship and Venture Capital Club in association with the Batten Institute, focuses on life-long learning and offers speakers, panels, workshops and activities for those interested in learning more about starting their own ventures.

Student Clubs The Batten Institute partners with a number of student-led organizations that seek to foster entrepreneurship and innovation.

Entrepreneurship & Venture Capital Club

34

Darden Technology Club

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Darden Impact Ventures

Darden Private Equity Club

Business Innovation & Design Club

Alumni Startup Workspaces In response to a strong demand from alumni who have been looking to Darden for services that support alumni entrepreneurs in the Bay Area and Washington, D.C., the Batten Institute established relationships with incubator-style shared workspaces at Plug and Play Tech Center in Sunnyvale, California, and at 1776 in Washington, D.C.

iDEA Network The Innovators, Designers and Entrepreneurs in Action (iDEA) Network supports Darden alumni interested in entrepreneurship and innovation. Resources include an online forum as well as numerous faculty talks and workshops around the world. This past year’s events have included: The Entrepreneurial Renaissance of Darden and Charlottesville Sunnyvale, CA: Plug and Play Tech Center 4 February 2014 Darden and 1776 Partnership Kickoff Event Washington, D.C.: 1776 6 March 2014 The ABCs of Today’s Fundraising: Angels, Bootstraps and Crowds Washington, D.C.: 1776 1 May 2014

Darden-1776 Kickoff Event, Washington, D.C.

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35

U.Va. and Regional Ecosystem Batten integrates Darden into the broader innovation and entrepreneurship ecosystem at U.Va. and beyond. These efforts have included a number of University-wide activities, such as the U.Va. Entrepreneurship Cup. In addition, the Institute has partnered with the Tom Tom Founders Festival to highlight innovation within Charlottesville.

GALANT for

CENTER

ENTREPRENEURSHIP

U.Va. Licensing & Ventures Group, U.Va. Innovation

Galant Center for Entrepreneurship, Mcintire School of Commerce

OpenGrounds, U.Va. Innovation

Entrepreneurship Group at U.Va.

HackCville

Tom Tom Founders Festival

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Virtual Communities The Batten Institute manages a portfolio of digital initiatives that seek to motivate virtual communities of students, alumni, faculty and others around entrepreneurship and innovation. This includes a portal dedicated to “design thinking” called Design@Darden, and another dedicated to the principles of effectuation, called the Society for Effectual Action, at effectuation.org.

Media Through 2013 and 2014 the Batten Institute’s programs and faculty affiliates appeared more than 100 times in national and international media.

Forbes Partnership

e+i : News and Notes from the Batten Institute

The Batten Institute continues its partnership with Forbes. com, providing Darden and U.Va. with a direct channel to Forbes.com readers. Darden and U.Va.’s thought leaders offer blogs and commentary to share their research, insights and commentary with a global business audience.

The Institute distributes a quarterly newsletter featuring Batten-supported research, news and events to key stakeholders, including alumni, the academic research community worldwide, and business practitioners. Each issue is distributed to approximately 19,000 contacts.

’13–’14 Academic Year :

28,168 views B AT T E N I N S T I T U T E A N N U A L R E P O R T 2 014

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IN FOCUS

Darden-1776 Partnership Taps the D.C. Start-Up Scene Alumni and students have helped facilitate a partnership between the Darden School and 1776, a venue for entrepreneurs in Washington, D.C., that offers a physical space and programs for start-ups.

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Jenny Schretter, the D.C.-based founder of jewelry company KOLTON.J, a consultant to start-ups, and a student in Darden’s executive MBA program, immediately saw in 1776 an opportunity to bring together various members of the Darden community. “Students and alumni in the D.C. area often want to be involved in Darden boot camps and pitch nights, but it can be difficult for us to make it down to Charlottesville,” she says. “There’s a hunger for involvement and a genuine interest in building relationships.”

Schretter and fellow students Brian Carruth and Varun Solan have been instrumental in getting the Darden–1776 partnership off the ground. A kickoff event in March 2014 that they helped plan drew approximately 120 people.

Physical spaces help people connect. Virtual spaces, like chat rooms, just aren’t the same.

“The D.C. area is in Darden’s backyard, and it has one of the largest concentrations of Darden alumni in the country,” says Stephanie Bennett (MBA ’09), who is working with other leaders in Darden’s D.C. and Baltimore alumni chapter to plan programs at 1776.

“Being an entrepreneur can be lonely and scary,” says Bennett, a financial advisor whose clients include small-business owners. “1776 provides access to such great resources and a support system. Alumni are very enthusiastic about the partnership.”

A

new partnership between the Darden School and 1776, a Washington, D.C.-based hub for start-ups, gives students and alumni more opportunities to connect with one another and with the entrepreneurial ecosystem in the nation’s capital.

1776, which opened in January 2013, offers workspace for young companies, an incubator program, mentoring, access to resources, and a full slate of networking and educational events. The Batten Institute now rents space in the facility on behalf of Darden, which is available to all Darden students and alumni.

So far, 1776 is attracting not just

entrepreneurs but also investors and others looking for deals. A couple of venture capital firms and corporations, including Microsoft, have a presence in the space.

“Physical spaces help people connect,” says Philippe Sommer, the director of Darden’s Center for Entrepreneurial Leadership.

“Virtual spaces, like chat rooms, just aren’t the same.” 1776, he hopes, will be a gathering place for members of the Darden community who either live in the district or are just passing through.

“Instead of sitting alone in a room, people will have a place where they can go, a place where they can talk to other people doing similar kinds of work.”

In addition to giving Darden students and alumni a landing space in D.C., the partnership with 1776 also helps them get plugged into what has become a vibrant start-up scene. “It used to be that most new ventures in D.C. were spun out from government work,” Sommer notes. “But that’s no longer the case.

The entrepreneurial ecosystem has grown to the point where there’s now a critical mass of ventures not related to the government. 1776 is a visible sign of that.” Schretter says that she has observed a proliferation of tech and telecommunications start-ups in particular.

The first Darden-sponsored event at 1776, “The ABCs of Today’s Fundraising: Angels, Bootstraps and Crowds,” was held in May 2014. The event, which was open to the entire 1776 community, included one-on-one mentoring sessions with experienced investors and entrepreneurs. Future events include a pitch night with ventures from U.Va.’s i.Lab Incubator and a panel discussion about the different types of skills founders need as their ventures grow.

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Financial Statements Income to support the programs and activities of the Batten Institute is provided primarily by an endowment established by Frank Batten, Sr. and the Batten family. As of June 2014, the market value of the endowment had reached approximately $113 million, which supported an annual budget of approximately $4.7 million for the 2013-14 academic year.

Expenses

FY 12

FY 13

FY 14

Administration

Administration Outreach

$446,693 $334,796

$557,785 $189,369

$666,034 $105,864

Subtotal

$781,489

$747,154

$771,898

CEL Staff Alumni Support Incubator Internships Competitions Courses MBA Scholarships

$354,030 $39,355 $164,399 $73,970 $45,231 $35,477 $653,900

$479,160 $19,656 $275,017 $97,412 $42,513 $23,167 $971,600

$558,599 $55,543 $295,480 $179,418 $27,275 $58,965 $1,097,400

Subtotal

$1,366,362

$1,908,525

$2,272,680

Researchers Research Grants Batten Fellows PhD Fellowships Faculty Salaries Conferences

$375,461 $170,498 $1,945 $72,943 $1,031,027 $552,384

$395,465 $152,766 $19,822 $81,045 $1,272,330 $144,643

$461,279 $115,429 $23,187 $206 $966,827 $45,215

Subtotal

$2,204,258

$2,066,071

$1,612,143

Total Operating Budget

$4,352,109

$4,721,750

$4,656,721

FY 12

FY 13

FY 14

Spendable Balance

$2,618,455

$3,476,523

$2,636,282

Endowment Interest Craddock Fund 20 Account Interest Sponsorships & Fees i.Lab Expansion Project Scholarships

$4,517,880 $16,000 $30,505 $94,044 $— $653,900

$3,426,678 $20,000 $30,505 $116,450 $1,109,499 $971,600

$3,576,776 $23,000 $32,878 $80,061 $64,409 $1,097,400

Total Income

$5,312,329

$5,674,732

$4,874,524

Operating Expenses i.Lab Expansion Project

$(4,352,109) $(102,152)

$(4,721,750) $(1,793,223)

$(4,656,721) —

Center for Entrepreneurial Leadership (CEL)

Center for Entrepreneurial Studies (CES)

Cash Flow Income

Expenses

40

Total Expenses

$(4,454,261)

$(6,514,973)

$(4,656,721)

Ending Balance

$3,476,523

$2,636,282

$2,854,085

B AT T E N I N S T I T U T E A N N U A L R E P O R T 2 014

FY 2013–14 Budget 14%

21%

Administration

Faculty Salaries

2%

Outreach

1%

Conferences

ria l

1%

nis t

ra tio

n

2%

$4,656,515 FY 2013–14 BUDGET

10%

Researchers l Leadership

1%

Ce n t er for En

Research Grants

BATTEN INSTITUTE

ia eur en pr tre

Center for Entrep ren

eu

Batten Fellows

Adm i

ies ud St

24%

MBA Scholarships

Alumni Support

1%

Competitions

1%

Courses

4%

Internships

6%

Incubator

12% CEL Staff

FY 2013–14 Administration Administration Outreach

Total Budget

Center for Entrepreneurial Leadership (CEL) $666,034 $105,864

MBA Scholarships CEL Staff Incubator Internships Courses Alumni Support Competitions

Center for Entrepreneurial Studies (CES) $1,097,400 $558,599 $295,480 $179,418 $58,965 $55,543 $27,275

Researchers Research Grants Batten Fellows Conferences Faculty Salaries

$461,279 $115,429 $23,187 $45,215 $966,827

$4,656,515 B AT T E N I N S T I T U T E A N N U A L R E P O R T 2 014

41

Leadership Administration

42

Sean D. Carr Executive Director and Assistant Professor B.A., Northwestern University; M.S., Columbia University; MBA, University of Virginia Darden School of Business; Ph.D., University of Virginia

Joyce Smaragdis Associate Director of Outreach B.A., University of Virginia; M.A., Virginia Polytechnic Institute and State University

Michael Lenox Academic Director and Associate Dean; Samuel L. Slover Research Professor of Business Administration B.S., M.S., University of Virginia; Ph.D., Massachusetts Institute of Technology

Derry Wade Assistant Director of Outreach A.B., Smith College; M.A., University of Virginia

Debbie White Associate Director of Operations B.A., University of Virginia; M.A., George Washington University

Gayle Noble Office Manager Pan American Business School

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Center for Entrepreneurial Leadership

Center for Entrepreneurial Studies

Philippe Sommer Director, Center for Entrepreneurial Leadership; Director, i.Lab at U.Va. B.A., Amherst College; MBA, Columbia University

Erika Herz Director of Intellectual Capital B.A., Wellesley College; MBA, University of Virginia Darden School of Business

MJ Dougherty Toms Associate Director, Center for Entrepreneurial Leadership B.A., Williams College; MBA, Yale University

Malgorzata “Gosia� Glinska Senior Research Associate B.A., University of Gdansk, Poland; M.A., Boston University; M.F.A., University of Virginia

Kathryne Carr Director, i.Lab Incubator B.A., Alleghany College

Andrew King Senior Research Associate B.A., The University of the South; M.S., Oxford Brookes University

Veronica McMillion Special Projects Manager B.A., University of Virginia

Asif Mehedi Research Associate B.B.A., University of Dhaka; MBA, University of Virginia Darden School of Business

Shivon Scott i.Lab Program Manager B.S., Cornell University; M.S., Rutgers University

Amy L. Halliday Managing Editor, Batten Publications A.B., Brown University; M.Phil., University of Oxford

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Mailing Address Batten Institute for Entrepreneurship and Innovation Darden School of Business University of Virginia P. O. Box 6550 Charlottesville, VA 22906-6550 Courier Address Batten Institute for Entrepreneurship and Innovation Darden School of Business University of Virginia 100 Darden Boulevard Charlottesville, VA 22903 Phone +1-434-924-1335 E-Mail batten@darden.virginia.edu Newsletter To receive our quarterly newsletter, please send an email request to eplusi@virginia.edu Web www.batteninstitute.org ilabatuva.org Twitter @BattenInstitute @DardenEship @DesignatDarden

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