Business incubator begins operations

The incubator will provide hands-on learning for students.

By Michael Sewall

Published May 7, 2009

After four years of planning and multiple obstacles along the way, the Life Sciences Business Incubator at Monsanto Place had its official ribbon cutting Monday, a move that could stimulate the state's economy and provide new opportunities for students.

The project was originally proposed in 2005 after MU received a $2.5 million federal grant from the Economic Development Administration. In 2007, then-Gov. Matt Blunt proposed a sale of the Missouri Higher Education Loan Authority's assets as a means to pay for capital improvements at colleges, including $2 million for the business incubator, which would have pushed total funding to the desired $9 million mark. But later in the session, MU's funding was cut completely.

After contract bidding in 2007, the Missouri Innovation Center met its goal when the Monsanto Company, a global provider of agricultural products, donated the $2 million needed.

"The Monsanto contribution came at a very critical time," Incubator President and chief executive Jake Halliday said. "We hoped the fundraising process would have been a sprint and it became more of a marathon."

Now that the incubator is officially open, Halliday said he can focus on the next challenge, which is forming and recruiting new companies and graduating them as self-sustaining companies. The incubator has four company tenants, all of which are either MU spin-offs or have faculty researchers.

The Office of Research received more than $203 million in sponsored research and federal grants for fiscal year 2008. Vice Chancellor for Research Robert Duncan, who serves on the incubator's board of directors, said the incubator will provide researchers with an outlet to expand their innovations.

"This is a wonderful way of bringing the Missouri entrepreneurial community and University of Missouri closer together," he said. "We're excited to see our basic research on campus have an avenue to grow."

The incubator could also become a hands-on learning experience for both graduate and undergraduate students. Halliday said the incubator works closely with the Trulaske College of Business and MBA candidates are engaged in learning activities with incubator companies.

"Students can become involved with the companies in a variety of assignments that are at the same time helpful for the companies and valuable learning experiences for the students," he said.

Five graduate students are working at the facility now, including first-year graduate student Xandra Sifuentes, who has conducted research at the incubator this year for two venture clients.

"I have gained a great deal of knowledge about high growth technology ventures and all of the dynamic work that is involved with helping such ventures to succeed," Sifuentes said. "The work helps me to apply the skills that I learn in the classroom more directly, which helps to reinforce the concepts at a quicker rate."

Halliday said he is developing a program for undergraduates that should be ready by the fall semester. Although final details are still being decided, Halliday said he would like to find a source of funding to select student entrepreneurs to work at the incubator. The sponsored students would be provided a workstation with a computer, phone and Internet access, as well as business coaching by the MIC.

The opportunities for students come at a time when the job market is shaky. For student entrepreneurs, experience at the incubator could help remedy that.

"Students who have a high interest in pursuing their own innovations should definitely use their talents and ideas to develop possible business ventures, especially given the current difficulty in finding summer internships and jobs," Sifuentes said.