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Venture Funding and the NIH SBIR Program
Martek’s Path to Success a
University of MD—Incubator—Taps—1985.
SBIRs: NIH, NSF, DoE—1980s & 1990s.
More Venture Capital—1989 & 1990s.
Maryland Industrial Partnerships—MIPS—1980s & 1990s.
Infant Formula Licensees—1990s.
Public Market Finance—1993 IPO.
Secondary Public Offerings—1990s.
Sales Sky Rocket—2000s.
Profitable in Q4 2003.
Major Expansion of Plants.
aSlide presentation by Pete Linsert, “The Martek Experience,” at National Research Council, Accelerating Innovation 2005 Conference, Washington, DC, October 19, 2005.
rebates. Licensees include Mead Johnson Nutritionals, Nestle, Abbott Laboratories, Wyeth and Royal Numico. Licensees now sell infant formula products containing Martek ingredients in over 70 countries. In 2006 and 2007, Martek signed multiyear sole source agreements with Abbott Laboratories and Mead Johnson to provide proprietary ingredients for infant formula, a core business of Martek.
Front Matter (R1-R14)
Executive Summary (1-4)
1 Introduction (5-21)
2 Study Methodology (22-29)
3 Venture Funding for NIH Phase II Winners, 1992-2002 (30-38)
4 Focus on the Top 200 Award Winners (39-42)
5 Other Sources of Data on the Participation of Venture-owned Firms (43-48)
6 Comparing Project Outcomes (49-60)
7 Impact of the SBA Ruling on the NIH SBIR Program (61-68)
Appendix A: Venture-funded Firms Among the 200 Most Prolific Winners of NIH Phase II Awards 1992-2002 (71-75)
Appendix B: NRC Non-participant Survey (76-79)
Appendix C: NIH List of Firms Excluded on the Grounds of Venture Capital Ownership (80-81)
Appendix D: Venture-funded Firms: Data from Hoover's Small Business Database and VentureSource (82-91)
Appendix E: Analysis of the Evidence Submitted by BIO (92-94)
Appendix F: SBA Administrative Ruling on Appeal of Cognetix, Inc. (95-102)
Appendix G: Letter from Elias A. Zerhouni, Director, National Institutes of Health to Hector V. Barreto, Administrator, U.S. Small Business Administration, June 28, 2005 (103-106)
Appendix H: Testimony by Steven C. Preston, SBA Administrator, to the House Small Business Committee, March 13, 2008 (107-111)
Appendix I: Bibliography (112-126)