creating wealth from innovation
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Creating Wealth from Innovation. What are the Odds?. Higher Education –Business and Community Interaction Survey Figure 4 Selected HE-BCI income streams 2003-2008 (real terms ) Source: HE-BCI 2003-2007 Part B Tables 1b, 2, 3 and 4c. - PowerPoint PPT PresentationTRANSCRIPT
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Creating Wealth from Innovation
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What are the Odds?
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Higher Education –Business and Community Interaction SurveyFigure 4 Selected HE-BCI income streams 2003-2008 (real terms)
Source: HE-BCI 2003-2007 Part B Tables 1b, 2, 3 and 4c
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“Over the last ten years, we have entered into long-term agreements with ten of the UK’s leading universities with a combined research income of over £1 billion”
Alan Aubrey CEO
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Even ‘professional’ investors make poor returns on early stage businesses
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Stop Beating Ourselves Up?
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Creating Wealth from Innovation
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Early Successes
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9
Courtesy of Rolls-RoyceStrategic Research Centre
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Emergency SmokeExtraction Motors
Variable Speed Drives
Oil SandsExtraction Systems
The BigMotor ManufacturersWire
Manufacturers
Ultra Deep Oil Extraction
Application Development
Hot Coatings LimitedHot Coatings LimitedHot Coatings LimitedHot Coatings Limited
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The digitalEnvironment
Nano-Genes
CatalystsOr Reactant
breeding &mutationprogram
Figure 2: Unlike biological evolution, QDGA allows us to direct an evolutionary process to define a molecule with specific desirable traits. We use a proprietary method to define Nano-Genes for the traits we want in a catalyst or reactant. We can also define the environment and control the breeding and mutation program.
The digitalEnvironment
Nano-Genes
CatalystsOr Reactant
breeding &mutationprogram
The digitalEnvironment
Nano-Genes
CatalystsOr Reactant
breeding &mutationprogram
Nano-Genes
CatalystsOr Reactant
breeding &mutationprogram
Figure 2: Unlike biological evolution, QDGA allows us to direct an evolutionary process to define a molecule with specific desirable traits. We use a proprietary method to define Nano-Genes for the traits we want in a catalyst or reactant. We can also define the environment and control the breeding and mutation program.
1313 ©2011 Commercial Edge LLP. All Rights Reserved.
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“The Teesside University – Shadowboxer project has demonstrated how carefully coordinated academic and commercial interests can align to significantly benefit society at large. We hope to work in a similarly constructive and socially responsible way with our own leading Universities at home in Australia.”
Former Australian Prime Minister, Bob Hawke
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What’s Different?
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1 in 160,000 chance of financial success
Traditional Approach
Ref: High Tech Start Up. John L. NesheimISBN 0-684-87170-X
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Approach
Benefits….• Research at good commercial rates• Zero wastage of research effort• Independence from over-subscribed grant funding • The opportunity to get leveraged value… Royalties
and Equity• Enhanced reputation to attract high quality
academics and students• More productive engagement with the business
community… for research, consulting and training
At this point
we’re making money
++
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R & DSales
&Marketing
ProjectManagement
& Supply Chain
Admin, LegalIP Management
Accountancy… et al
Partners, MarketsClients and Consumers
Fund Raising&
Equity Management
SharedService
University
University
University
University
University
TheVentures
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Researcher
Scientist (Middle Management, SME’s)
B
A
Big CompanyExecutive
BigProfits
BigImpact
(Proven Smaller Company Entrepreneurs)
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Networked with Decision MakersRespected in IndustryHigh Impact Deal ExperienceDone it Before
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The Process
• Workshop
• One to One assessment sessions
• Objective review of the University’s potential
• Umbrella agreement
• Pump Prime Funding
• Outline Interim Agreement
• Sign up individual Interim Agreements
• Identify and close start-up deals
• Form company
• Create more projects and profits… Maximise equity value
• ‘Tax’ revenues to self fund the portfolio
• Exit individual ventures for Capital Gains or Trade with Profits
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Interim Agreement
• To allow us to work out how to make it a commercial success.
• 3 equal votes University, Academic Lead, Business Lead
• Business development costs taken out of margin
• IP granted to the venture
• Shareholding… 45 – CE / 55 – Academic and University
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Key Points of Differentiation
• Consortium – Shared Service
• High Skilled and Networked Business People.
• Incentives aligned on OUTPUT measures and the interests of the inventors and universities.
• Self funding, apart from an initial pump prime of cash from the University.
• It is a non-exclusive arrangement, in addition to existing or future independent initiatives or relationships with other external bodies.
• It brings new, untapped opportunities to the University and academics that would not otherwise be seen.
• It can also be used to improve existing relationships and increase financial returns.
• It incurs no risk on the part of the universities and is legally independent from the participating universities.
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www.tcei.co.uk
Andy Todd
Telephone: +44 (0)7785 394220