SSTI Digest

Does it matter whether a start-up takes money from a large venture firm or a small venture firm? According to the just-released VentureOne Deal Terms Report, the answer is a resounding yes.

Using responses from executives at 269 companies that raised venture capital in 2002 and the first four months of 2003 paired with research from VentureOne, the report found that big venture firms – those with assets under management of $1 billion or more – take larger stakes in early rounds. In fact, investors in rounds led by large firms were likely to end up with 40 percent to 60 percent of a company more than half the time. In comparison, investors in deals led by small firms attained that kind of stake only 34 percent of the time.

The University of California, San Diego's CONNECT program will begin a search for a new director since Fred Cutler's resignation at the end of September.

In signing his state's fiscal year 2003-04 budget on August 2, California Governor Gray Davis shaved General Fund expenditures by $7 billion in an effort to address a $38.2 billion budget shortfall. Among those cuts was funding for the California Technology, Trade and Commerce Agency (TTCA), the state's principal catalyst for innovation, investment and economic opportunity.

Gov. Davis stated in a press release that "neither party would embrace" his original budget request, which included funding for TTCA. The approved $71.1 billion spending plan is minus $17 million to $18 million per year for the agency, to be phased out by January 1, 2004. Some of the work performed by TTCA will be carried on by the Business, Transportation and Housing Agency, including management of the Small Business Loan Guarantee and Manufacturing Technology Programs.

TOP Reauthorized and To Grow, Says Senate Commerce Committee The Technology Opportunities Program (TOP), a highly-competitive, merit-based grant program for stimulating digital network technologies in the U.S., might survive after all. The Senate Committee on Commerce, Science, and Transportation adopted S. 1478 on July 31, reauthorizing the National Telecommunications Information Administration (NTIA) for four years and effectively restoring funding for TOP. Under the reauthorization act, NTIA would receive $18.9 million in 2004 and $21.2 million annually by FY 2008. TOP, which was proposed for elimination by the Bush Administration, would receive $15.9 million in FY 2004, $16.3 million in FY 2005 and $17.9 million in FY 2008.

Joint Venture: Silicon Valley has named Russell Hancock as its new president and CEO.

Richard C. Atkinson, the president of the University of California system since 1995, will receive the prestigious 2003 Vannevar Bush Award from the National Science Foundation for lifetime contributions to the nation in science and technology.

Nonprofits looking for financial assistance, technology assistance or assistance in general may not need to look much further than one browser window. Two online resources, TechSoup and Gifts In Kind, offer a wide variety of tools that can help nonprofit organizations stretch tight budgets.

TechSoup is a comprehensive source of technology information just for nonprofit organizations. Powered by CompuMentor, one of the nation's oldest and largest nonprofit technology assistance agencies, TechSoup.org offers nonprofits one-stop shopping for their technology needs. While TechSoup is aimed at the 650,000 small to midsize nonprofits, larger nonprofits also may find useful information.

Perhaps in no other sector are efforts to grow an industry so dependent on a strong public-private partnership as they are for biotech and the life sciences. Most of the research funding for the field flows from the government to universities and research institutions. Industry then steps up for clinical studies and commercialization.

The Sacramento Area Regional Technology Alliance announced this week that Clare Emerson will replace Lewis Attardo as executive director.

A recent $10 billion judgment against Philip Morris may have the tobacco giant filing bankruptcy. Philip Morris has claimed it cannot post a $12 billion bond to appeal a lawsuit in Illinois or even meet the $2.6 billion payment due mid-April for the 1998 settlement with the states.

The tobacco company's actions are expected to have repercussions for several states counting on the funds to finance TBED initiatives. Among those threatened are Michigan's well known $1 billion life science investment over 20 years. One-fifth of Pennsylvania's future tobacco settlement payments are targeted toward life science technologies. And, the Missouri legislature is considering a bill that would commit one-quarter of the state's settlement money to the life sciences, beginning in 2006.

The United States Patent and Trademark Office has posted a preliminary list of the 10 U.S. universities receiving the most patents for inventions during calendar year 2002. The University of California tops the list for the ninth consecutive year. The table below also presents the school's 2001 ranking and total. 

The National Center for Public Policy and Higher Education recently released The Rising Price of Higher Education, which documents the rising costs of public education in the U.S. Using the data found in the report, SSTI has constructed a 50-state table presenting a comparison of the cost of tuition and fees at 2- and 4-year public institutions in 2001-02 vs 2002-03.

For 4-year institutions, Massachusetts shows the greatest change, 23.7 percent, between the last two academic years. Missouri's average public tuition and fees for 4-year institutions in 2002-03 reflects a 20.1 percent increase over the previous year. In the same category, New Jersey tops all states with the highest average ($6,533), as its overall increase was 13.4 percent.