In 2014, a group of MIT students enrolled in course 15.366 (Climate and Energy Ventures) devised a groundbreaking plan to harness MIT’s research focused on transmitting data between chips using light instead of electricity. This innovative approach has significant potential to reduce energy consumption.
Upon completing the course, which challenges participants to identify initial customers and present their business concepts to investors, the team secured the grand prizes at the MIT Clean Energy Prize. Today, their company, Ayar Labs, has successfully raised $370 million from industry leaders like AMD, Intel, and NVIDIA, enabling them to scale the production of their optical chip interconnects.
Ayar Labs is just one success story stemming from 15.366. Since its inception in 2007, this course has inspired the creation of over 150 companies by its alumni.
During the course, student teams select a specific technology or idea and chart the best course for its commercialization. The semester-long endeavor, enriched by expert lectures and mentoring, provides students with invaluable real-world experience in launching a venture.
“Our mission is to equip entrepreneurs with the skills necessary to start companies in the climate and energy sectors,” explains Senior Lecturer Tod Hynes, who co-founded and has been teaching the course since 2008. “We emphasize hands-on experience by requiring students to engage with customers, suppliers, partners, and investors, while refining their pitches based on feedback.”
Each year, hundreds of students vie for a spot in this highly regarded class. As a key driver of MIT spinoffs, it contributes to the impressive statistic that MIT alumni-founded companies generate approximately $1.9 trillion in annual revenue. This staggering figure would position MIT as the 10th largest economy globally, if it were a standalone country, according to a 2015 analysis.
“‘Mens et manus’ (‘mind and hand’) encapsulates MIT’s approach, and the practical experience we offer through this class is unparalleled,” Hynes notes. “Going through the commercialization process in a real-world setting enhances learning and prepares students for future challenges. Our experiential learning methods align seamlessly with MIT’s educational philosophy.”
Engaging in Startup Simulation
The course was initiated by Bill Aulet, a professor at the MIT Sloan School of Management, who also serves as the managing director of the Martin Trust Center for MIT Entrepreneurship. After advising Aulet in its inaugural year and assisting in its launch, Hynes began co-teaching the class in the fall of 2008. Together, they also established the Climate and Energy Prize, which continues to receive interest from teams worldwide, with over 150 applications this year.
A key element of the course is fostering collaboration among students from various academic disciplines. Annually, organizers strive to include participants with backgrounds in science, engineering, business, and public policy.
“Our goal is to make the class accessible to all MIT students,” Hynes remarks, adding that the course has also opened its doors to students from Harvard University. “We aim to promote interdisciplinary collaboration.”
The class rapidly gained traction on campus, with roughly 150 students applying for around 50 available spots in recent years.
“I highlighted my interest in Climate and Energy Ventures in my MIT application,” shares Chris Johnson, a graduate student in the Leaders for Global Operations (LGO) Program. “With a passion for sustainability and a keen interest in startups, I’d heard excellent reviews about the class and decided to apply in my final semester.”
The course primarily selects graduate students, ideally those in their last year, to facilitate continued progress on their ventures after the class concludes.
“Regardless of whether students continue their projects, the experience gained here is invaluable for their future careers,” emphasizes Jennifer Turliuk, practice leader for climate and energy artificial intelligence at the Martin Trust Center for Entrepreneurship, who co-taught this fall.
Hynes describes the course as a startup simulation. Prior to its start, organizers narrow down a list of up to 30 technologies and ideas that are ripe for commercialization. Students are also welcomed to propose their own ideas.
Following a few weeks of orientation and lectures, students form multidisciplinary teams of about five. They navigate through the 24 steps required for startup development outlined in Aulet’s book, “Disciplined Entrepreneurship.” This comprehensive process covers everything from engaging potential early customers to defining value propositions and creating business models. The semester culminates in a one-hour final presentation designed to mimic a pitch to investors or government officials.
“It’s an intense workload, and since it’s a team-focused class, your success hinges on your collaboration with peers,” Hynes adds. “Peer evaluations account for about 10% of the final grade, encouraging proactive teamwork.”
Students describe the experience as both fast-paced and fulfilling.
“It’s certainly challenging,” states Sofie Netteberg, another graduate student in the LGO program at MIT. “Depending on your project’s stage, you can make significant progress in a short time. My team was at the lab technology level, constantly asking ourselves, ‘What’s our next move?’ The professors offer tremendous support throughout.”
Translating Classroom Learning to Real-World Impact
This fall’s final presentations took place at MIT-affiliated venture firm The Engine, in front of an audience comprising professors, investors, and representatives from entrepreneurial foundations.
“We received valuable feedback from experts who represent the next steps for advancing our technology if our startup comes to fruition,” reflects Johnson, whose team is commercializing a unique method for storing energy in concrete. “It was incredibly constructive and helped clarify the path ahead.”
Throughout the semester, students approach the project as if it were a genuine venture, extending beyond the classroom.
“Grades aren’t our priority, it’s the learning experience that matters,” acknowledges Netteberg, whose team is working on electrolyzer technology intended to efficiently produce green hydrogen. “We’re not concerned about achieving an A. Instead, we’re focused on obtaining real feedback: What worked well? What areas need improvement?”
Hynes notes that several investors have expressed interest in supporting the projects emerging from the class. Looking ahead, he hopes students leverage the experimental environment created for them to explore innovative and ambitious ideas.
“Over the years, students have approached projects with pragmatic mindsets, which is beneficial but can also be somewhat restrictive,” Hynes observes. “This setting provides an opportunity to pursue bold, high-impact ideas. Students are encouraged to think big and experiment.”
Photo credit & article inspired by: Massachusetts Institute of Technology
