Assessment of Incubator Program - City of San Jose

NBIA Best Practice 5: Build an effective board of directors committed tothe incubator's mission and to maximizing management's role indeveloping successful companies.Key Findings: The EBC and SBC have advisory boards with board members serving on bothboards. The SBC board only meets as needed, and has not met in several years. The boards representconsulting firms, Agency staff, SJSURF, other partner organizations and some industryrepresentatives. By agreement, the Agency’s Executive Director, or his designee, is a member of theEBC board. The US MAC reported it is in the process of forming an advisory board. It should benoted the establishment and functioning of this board is a requirement of the Sublease and Co-Sponsorship Operating Agreement with SJSURF and was a requirement that was given specialemphasis when the agreement was amended in spring 2007.The BioCenter has a six member industry-based Advisory Group that provides recommendations onthe business model and marketing of the shared equipment labs. The SJSURF, as per OperatingAgreement 36 was required to establish and convene an Advisory Board by September 30, 2007. TheBoard’s responsibility is to review and approve the Center’s Budgets, policies, goals, fundraisingstrategy, subtenant selection and staffing.In interview with BioCenter staff, the Agency and SJSURF serve as the Board of Directors; however,joint meetings are few. SJSURF has been “hands off” on the management or operations of theincubator just handling the fiscal responsibilities, i.e., bank account, receivables, payables, contractsigning and insurance. However, the BioCenter also maintains full accounting accrual records todouble check the SJSURF (a needed checks and balance duplication as SJSURF has a complexaccounting process). Because of this hands-off approach, the incubator manager established their ownrelationships with other University departments, such as, Master of BioTechnology Program. There isnew interest from the University in the BioCenter because of a Stem Cell grant award to theUniversity and its relationship to business at the BioCenter.On the other hand, the BioCenter staff works closely with Agency staff on incubator operations,management, financing and expansion.36Source: Second Amendment to Sublease and Co-Sponsorship Operating Agreement, dated June 15, 2007, Section 6Advisory BoardSan Jose Incubator Impact Assessment – June 2009 Page 30 of 62