Equity Solutions Services at UC Berkeley

Equity Solutions Services (ESS) is the latest addition to UC Berkeley’s ecosystem for Innovation & Entrepreneurship (I&E). Under the leadership of Director Omar Qarshi, and including Carol Mimura and Raymund Santiago, the Equity Solutions Services manages UC Berkeley's company stock holdings, primarily those obtained from IP licenses and access to campus facilities and services, and other commercial arrangements.

Under the umbrella of the Chief Innovation & Entrepreneurship Officer's Office of Innovation and Entrepreneurship (I&E), the team seeks to diversify the types of transactions that result in company stock ownership in support of the university's mission. The team collaborates with stakeholders across the start-up equity lifecycle, from company formation, capital raises, and corporate actions to liquidity/exit events. Our partners include UC Berkeley's Office of Intellectual Property and Industry Research Alliances, incubators, accelerators, hubs (e.g. CITRIS Foundry, BBH, BAIR Commons, and others) and affiliated venture capital funds (e.g. the eight existing “shared-carry funds”), and also the Office of the Chief Investment Officer and the Knowledge Transfer Office at UC’s Office of the President.

The ESS team’s responsibilities include the development of scalable tools and services for management of innovation equity in the Berkeley I&E ecosystem. As the leader in localized equity management, the team’s platform is designed with other UC campuses in mind. Services offered include the latest digital record keeping platforms inclusive of a full array of on-demand analytics tools, templates, and outsourcing program for campuses that desire to leverage Berkeley’s ecosystem.

In addition, ESS is the steward of all innovation acquired private equity portfolios across the entire UC Berkeley campus (including outsourced equity management for partner campuses). Initiatives include growing portfolio of equity positions through private financing rounds (e.g. Seed, Series A-D), ongoing management of equity rights, pro-rata rights, participation rights, capitalization tables, valuations, stock transfers, co- investment rights, corporate actions, mergers, acquisitions, and liquidity events.

This makes ESS a natural point of contact for interactions related to equity ownership between startups founders, the campus I&E ecosystem, and our shared-return venture capital partners. The team supports campus licensing officers in negotiations to help win more equity in advancing UCB’s mission. Consults incubator / accelerator programs on efficient means of taking equity stake in their startup cohorts. Advises University Development and Alumni Relations (UDAR) from time to time on management of gift-acquired equity in startups. Collaborates with Berkeley leadership on private equity programs established under various other commercial arrangements, and capital matches startups with our shared-return VC funds for financing needs.

An important goal of ESS is to help create new ways to acquire equity beyond licensing and many accelerators and incubators programs. Such as partnerships with other UC campuses, new initiatives under other commercial arrangements, and identifying avenues of co-investing for the benefit of Berkeley campus.

Examples of Initiatives

Lifecycle Monitoring

Monitoring a growing portfolio of equity positions (~110) through private financing rounds (e.g., Seed, Series A-D, M&A, IPO).

UC CIO Collaboration

Collaborating with the office of UC’s Chief Investment Officer on equity certificate transfers, co-investment rights, corporate actions, mergers, acquisitions, and liquidation events.

Licensing Support

Supporting campus licensing officers in negotiations to help win more equity for advancing UCB’s mission.

Portfolio Insights

Driving better decisions to help grow our equity ownership through portfolio segmentation and characteristic studies. Examples may include lifecycle analysis of our average startup from seed to exit across different industries, sciences, and technologies. Perspective studies may include time from licensure to liquidity event, valuation at each round of financing, equity offered per round, and ultimately return multiple achieved over time. These insights will provide transparency with our partners when there is a need to raise new funds.

Contact Point

Natural point of contact for interactions related to equity between startup founders and the campus I&E ecosystem.

Equity Packages

Ongoing management of equity packages, pro-rata rights, participation rights, capitalization tables, and valuation connected to the current portfolio.

Gift Advisory

Advising University Development and Alumni Relations (UDAR) from time to time on management of gift-acquired equity in startups.

Scenario analysis

Data simulation and hypothesis testing of historical equity portfolio decision points to better inform UC Berkeley of incremental return on invested capital, potential future funding opportunities and optimal capital allocation. Hypothetical scenarios may include agnostic seed stage funding, targeted participation in specific funding rounds such as Series A, B, pre-IPO, or co-investing with our affiliates. Outcomes will inform magnitude of funding needs if we choose to make a calculated pivot in such directions.

Diversification

Diversifying our portfolio of equity instruments with Simple Agreements for Future Equity (SAFEs), warrants, notes, etc.

Record-Keeping and Process Streamlining

Designing and implementing scalable and centralized record-keeping and decision-making for process efficiency within the startup equity portfolio. 

New Sources

Helping create new ways to acquire equity beyond licensing such as through UCB’s many accelerators and incubators (e.g., receiving fair market value in exchange for access to campus facilities and services).

Capital Matching

Connecting funding sources and UC partners to portfolio pro-rata raises, series, etc.