Venture Funding and the NIH SBIR Program (2009) / Chapter Skim
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5 Other Sources of Data on the Participation of Venture-owned Firms
5 Other Sources of Data on the Participation of Venture-owned Firms
Pages 43-48
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From page 43... ...
The final baseline for the survey is therefore the 2,051 respondents with valid email addresses. 1 National Research Council, An Assessment of the Small Business Innoation Research Program -- Project Methodology, Washington, DC: The National Academies Press, 2004.
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From page 44... ...
Because being excluded is itself a sufficient condition for non-participation, it also seemed possible that venture ownership would be an especially powerful reason for non-application among those who mentioned it at all, so we also asked 3The response rates for the SBIR survey are high for a technology survey, especially given that this survey is targeted to small firms. Fledgling companies tend to have a very high attrition rate.
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From page 45... ...
Number of Percent of Response Responses Responses 1 Company is out of business 81 12.2 2 No longer a research oriented company 24 3.6 3 No longer working in technical areas that are likely to be funded 31 4.7 by NIH 4 The competition for awards is such that the likelihood of 102 15.3 winning an award is too small to justify the effort to apply 5 The selection mechanism is not one that we believe will allow us 96 14.4 to make winning proposals 6 Risk to our IP or business secrets during the selection procedure 25 3.8 is too high 7 The delays in funding are too long to make the effort worthwhile 89 13.4 8 No longer eligible for the program because we have more than 12 1.8 500 employees 9 No longer eligible for the program because we are now a 10 1.5 publicly owned company with more than 50 percent institutional ownership 10 No longer eligible for the program because we are majority 7 1.1 foreign-owned 11 No longer eligible for the program because we are majority 12 1.8 institution-owned (e.g., by venture capital companies) 12 The size of awards is insufficient to justify the effort involved in 69 10.4 applying 13 Other 108 16.2 (Denominator)
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From page 46... ...
Number of Percent of Response Responses Responses 1 Company is out of business 74 22.8 2 No longer a research oriented company 11 3.4 3 No longer working in technical areas that are likely to be funded 14 4.3 by NIH 4 The competition for awards is such that the likelihood of 44 13.6 winning an award is too small to justify the effort to apply 5 The selection mechanism is not one that we believe will allow us 49 15.1 to make winning proposals 6 Risk to our IP or business secrets during the selection procedure 2 0.6 is too high 7 The delays in funding are too long to make the effort worthwhile 26 8.0 8 No longer eligible for the program because we have more than 7 2.2 500 employees 9 No longer eligible for the program because we are now a 5 1.5 publicly owned company with more than 50 percent institutional ownership 10 No longer eligible for the program because we are majority 6 1.9 foreign-owned 11 No longer eligible for the program because we are majority 8 2.5 institution-owned (e.g., by venture capital companies) 12 The size of awards is insufficient to justify the effort involved in 27 8.3 applying 13 Other 51 15.7 (Denominator)
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From page 47... ...
5.3 BALANCING OBJECTIVES: A VIEW FROM MARTEK'S EXPERIENCE9 Martek -- a commercially successful company, with a market capitalization of over $665 million in 2007 -- provides the perspective of a successful firm that has benefited from complementarities between SBIR awards and venture funding. 10 Martek has licensed its nutritional oils to 28 infant formula manufacturers, who collectively represent approximately 70 percent of the estimated $8.5 to $9.5 billion worldwide wholesale market for infant formula and nearly 100 percent of the estimated $3.0 to $3.5 billion U.S.
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From page 48... ...
Licensees include Mead Johnson Nutritionals, Nestle, Abbott Laboratories, Wyeth and Royal Numico. Licensees now sell infant formula products con taining Martek ingredients in over 70 countries.
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