New Report Shows USC Start-ups Raised More Than $380 million in the Past Three Years

LOS ANGELES, Dec. 8, 2011 /PRNewswire-USNewswire/ -- The USC Stevens Institute for Innovation, a university wide resource in the office of the provost that helps USC innovators make maximum societal or market impact with their breakthrough ideas, has released an in-depth analysis of the sources of financing for startup companies based on USC research.

The study found that 39 USC startups raised more than $800 million over the past 15 years and more than $380 million of that was raised in the past 3 years, at the height of the financial crisis.

"In such a challenging economy, it's exciting to hear that USC startups are raising such high levels of capital, which provides outside validation for their high growth potential," said USC Vice Provost for Innovation and Executive Director of the USC Stevens Institute for Innovation, Krisztina "Z" Holly.  "Their success is a great indicator of the broader impact that major research universities can have driving economic growth locally and nationally."

To view the full report, please visit http://stevens.usc.edu/read_article.php?news_id=718

Other top-level findings include:

• Twenty firms raised $5 million each – Twenty USC-affiliated companies have raised at least $5 million each.
• Still in business – The percentage of USC spinouts still in business is very high (70%), and is roughly the same for both Los Angeles-based startups and those located elsewhere.
• Sticky businesses – More than 85% of the USC-connected startups still in business are currently in their original location.
• Staying local – Roughly half of USC startups have historically located in Los Angeles County, however, this percentage appears to be falling significantly. VC-backed USC startups (both life science and non-life science) that have located in Los Angeles have thrived, raising significant sums of capital and achieving successful exits.
• University startups are the building blocks for an innovation ecosystem – Unleashing the full potential of startups based on university research is incredibly important to the creation of new industries and sustainable job growth.
• Diverse sources: Funding for USC Startups has evolved from being predominantly venture capital-based prior to 2002 to a much more diverse set of funding sources in the past few years, such as private investors, government grants, and investments by corporations.
• Above average VC investment – The average VC investment in USC startups has been above the national average since 2005.  USC startups that attract VC funding tend to be quite successful and attract large ongoing investments.  Similarly, the initial funding of USC startups by VC firms has risen since 2001, while nationally VC first-sequence investments have dropped markedly.
• Government grants – Government grants have grown to now comprise roughly ten percent of all USC startup funding. Companies that form solely around government grants do not seem to attract significant ongoing funding but roughly 80% of government funding is going to existing startups already funded by other sources.

To view the full report, click HERE.

For more information or for interview requests please contact Ian Murphy at 310.689.6397 or [email protected]

About USC Stevens Institute for Innovation
The USC Stevens Institute for Innovation (http://stevens.usc.edu) is a university-wide resource in the Office of the Provost at the University of Southern California that helps identify, nurture, protect, and transfer to the market the most exciting innovations from USC.  It also provides a central connection for industry seeking cutting-edge innovations in which to invest. As part of this role, the USC Stevens Institute manages the university's intellectual property portfolio stemming from its $560M annual research program. Furthermore, the USC Stevens Institute develops the innovator as well as innovations, through educational programs, community-building events, and showcase opportunities.

SOURCE USC Stevens Institute for Innovation