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Dr J Malcolm WilkinsonManaging Director

Technology For Industry LtdCambridgeshire, UK

www.tfi-ltd.co.uk

Nanotechnology Start-up Companies: Analysis of Business Models

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ukTechnology for Industry Ltd

Research Discovery

Finding Investment

Proof of Concept

Mentoring & Project Management

Prototype

Design of Economic Manufacturing Plants

Pilot Production

Channels to Market

Scale Up

Finding Partners

From Concept to Market for MNT

Supplying Market Intelligence

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Contents of Presentation

§ What is Nanotech§ Why Nanotech is good for you§ What is happening in the UK§ Challenges to commercialisation§ How to fix it: the UK solution

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ukWhat is Nanotech?

0.1 nm 1 nm 10 nm 100 nm 1,000 nm

(1 µm)

10 µm 100 µm 1,000 µm

(1 mm)

AFM Tip Radius

Carbon Nanotube (d)

AtomDNA Width

Metal Nanoparticle

Metal Ink Drop Size (r)

Tissue Scaffold Pore Size

Micrometer Measurement and Machining

Diamond Scalpel Edge Radius

Lens Nanocoating

CD Track Spacing

Metal Nanowires (d)

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ukWhat is Nanotech?

Materials

Processes

Structures

Applications

n Nanolithographyn Etchingn Depositionn Ultraprecision

Machining

n Metrologyn Sol Gel

n Inkjet n Self Assembled

Monolayersn Chemistry

n Hydrogen Storagen Fuel Cellsn Catalysts n Data Storage

n Implantsn Turbine,

Aerospace Coatings

n Diagnostics n Lab-on-chip n Medical Devices n Photonic Crystals

Displays n Solar Cells

n Drug Discovery/ Synthesis

n Drug Delivery

n Bio-Plastronics Plastronics

Materials

Processes

Structures

Applications

n Nanolithographyn Etchingn Depositionn Ultraprecision

Machining

n Metrologyn Sol Gel

n Inkjet n Self Assembled

Monolayersn Chemistry

n Hydrogen Storagen Fuel Cellsn Catalysts n Data Storage

n Implantsn Turbine,

Aerospace Coatings

n Diagnostics n Lab-on-chip n Medical Devices n Photonic Crystals

Displays n Solar Cells

n Drug Discovery/ Synthesis

n Drug Delivery

n Bio-Plastronics Plastronics

Nanotechnology is at an early stage of development and is now moving frommaterials to applications

n Organic Circuitsn Biocompatible coatingsn Biosensors, Arrays

n Nanomagnetics

n Nanotubesn NanostructuredCoatingsn Nanoparticles, Qdots

Bottom UpAssembly

Top DownMicro-

structuring

n DNA, Proteins, Polymers

SoftMaterials

Hard Materialsn Magnetic

materialsn III-Vsn Siliconn Functional oxides

(thick/thin films)

n Metals

n Compositesn Ceramic oxides

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The Other Way of Looking at it…

Nanotechnology

Random Acts of Management, A Dilbert Book by Scott Adams, 2000

Putting ‘Nano’ in your company name increases your chances of raising cash!

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ukNanotech Start-ups

Quantum Logic DevicesArgonideHybrid PlasticsNanogateNanomatNano powder EnterprisesNano Powders IndustriesNanoProducts CorpNanoScale Materials IncNexTech MaterialsNyacol Nanotechnologies IncOmal AutomationOxonicaPolysciences IncPowdermet IncSCI Engineered MaterialsTAL Materials IncTetronics LtdCarboLexCarbon Nanotechnologies IncHyperion Catalysis InternationalMolecular Nanosystems IncNanoLabChemat Technologies IncNanolayersStructure VisionNew River Kinematics

Flamel TechnologiesI MEDD IncNanoBio CorpNanoCarrierNanotherapeuticsAdvion BiosciencesBioForce Nanoscience IncNanion Technologies GMBHTriad Therapeutics IncNADIR Filtration GMBHNanocrystal Imaging CorpSpinTekZyvexNanofilm Surface AnalysisMolecular Imprints IncNanoInk IncNanomix IncItN Nanovation GmbhClariantNanoGram CorpInMatNanofilmPlasmonicsReactive NanotechNanocorTritonAP MaterialsE Ink CorpIntellikraft LtdLuxtera IncMolecular Electronics CorpNanoMagneticsNanosys

NanoProducts Corp Angstrom MedicaCrystalplexDynalbiotechEvident Technologies, Inc micromod Partikeltechnologie GmbHNanoprobes Nanospectra Biosciences, Inc NanoMateriaOrthovita psividaSuNyx Alnis BioSciences, Inc COSMIX Nanobac Life Sciences Inc. Advanced Magnetics, Inc BioTrove, Inc. Cytimmune Sciences IncEpocal HandyLabImmuniconNanobac OYNanofluidicsNanogenNanolyticsNanosphere IncNanostreamPicoliter IncProtiverisBiosante PharmaceuticalsC Sixty IncCapsulution Nanoscience AGFerx Inc

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ukWhy Nanotech is good for you

§ Materials properties: Carbon nanotubes have 600 times the strength of steel by weight.

§ More reactive: Iron nanoparticles are 10 to 1000 times more reactive than conventional iron powder. They can absorb toxic compounds and dismantle them.

§ New properties: Silver nanoparticles are more biocidal than antibiotics.

§ Self organising structure: Self assembly gold nanostructures can improve electrical contact in integrated electrical circuits.

§ Thermal stability : Carbon nanotubes are thermally stable in vacuum up to 2800 deg. Celsius

§ Electrical conductivity: Electrical conductivity of carbon nanotubes are 1000 times greater than copper.

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ukNanoproducts are in the market NOW

L’Oreal Cosmetic cream

Wrinkle and stain resistant trouser by Eddie Bauer

ALZA's patented STEALTH®Technology lipid nanoparticlesfor drug delivery

Nanocrystalline Silver Wound Dressing by Smith & Nephew

Qdot Nanocrystals by quantum Dot Corp

Self Cleaning surface by NANO-X GMBH

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ukTechnology Lifecycle

Mar

ket

Siz

e

100 20 30 40

Timescale (Years)

Microtechnology

Nanotechnology

OEM Pioneers

Start-ups

Shake-out

Mainstream

Acquisition/Mergers

Consolidation

Obsolescence

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ukNanotech in the UK

Research Centres§ IRC Nanotechnology (University of Cambridge)§ Nanoelectronics Research Centre (Glasgow University)§ The Institute for Nanoscale Science and Technology (University of Newcastle)§ London Centre for Nanotechnology§ Oxford Centre for Molecular Science (Oxford University)§ QinetiQ§ Nanoscale Physics Research Laboratory (University of Birmingham)§ Institute of Particle Science & Engineering (University of Leeds)§ Centre for Molecular and Nanoscale Electronics (University of Durham)Bioscience Incubators§ Biocity, Nottingham§ Begbroke Science Park (Oxford University)§ The Babraham Institute, Cambridge§ Medical Marketing International , ALBA Centre, Scotland§ Roslin Institute , Edinburgh§ Nanotechnology Research Institute (University of Ulster)

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ukNanotech in the UK

Start up Companies§ IMPT§ Oxonica§ pSimedica Ltd § Aktina Ltd§ NanoMagnetics Ltd§ Kelvin Nanotechnology§ JR Nanotech§ Nanoco

§ Nanotecture Ltd

…42 start-ups in the UK

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ukBusiness Model Summary

§ R&DNanotectureMesoporous metal and metal oxide films

§ R&D to pilot scale§ License volume manufacturers

NanoCoQuantum Dots

§ Licensee§ Reseller

JR NanotechSilver nanoparticles for healthcare

§ Pilot production§ Sub contract volume production

NanoMagneticsNanoparticles

§ Prototyping samples§ Products

AktinaSurface Coatings

§ Product salespSi medicaMedical implants

§ Creating subsidiary companies to manufacture§ Licensing

OxonicaNanomaterials for fuels, cosmetics

§ Prototyping serviceIMPTSpray coatings for turbines, fuel cells

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ukCommercialisation Challenge

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Nanotech: The Challenges

§ How to scale up from few grammes to 100kg§ The application gap: how to formulate powders

into products§ Handling nanomaterials without agglomeration§ Demonstrating cost effectiveness

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ukWhite Rose Nanofactory & AFMC

Nanofactory

AFMC

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White Rose Nanofactory

§ Promoting collaborative research§ Characterisation and modelling§ Addressing the application gap§ Growing multidisciplinary teams

Nanofactory

Business Model: Open access collaborative research

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ukAdvanced Functional Materials Centre (AFMC)

§ Formulation of powders into products§ How to scale up from research to production§ Handling nanomaterials

AFMC

Business Model: Open access collaborative research

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ukWhite Rose Nanofactory & AFMC Collaborative Research Model

Industry§ Avecia§ DuPont Teijin Films§ ICI § Johnson Matthey§ Malvern Instruments

Pfizer§ Proctor & Gamble§ Reckitt Benckiser§ Schlumberger§ Shell§ Smith & Nephew§ Syngenta§ Thomas Swan§ Uniqema

Universities § Bradford§ Durham § Leeds§ Newcastle § Sheffield§ York

Project Revenue$33 million over 5 years

Initial Partners include:

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Technology For Industry LtdCambridgeshire, UK

Tel: +44 (0)1353 865 400www.tfi-ltd.co.uk

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ukWhite Rose Nanofactory Business Model

§ White Rose Nanofactory is a UK collaborative project bringing together the expertise from 4 Universities, 2 Faraday Centres and participation from over 130 companies.

§ An open access platform for R&D, training and technology transfer

§ Focus on Nanotech for FMCG (Fast Moving Consumer Goods)§ Revenue stream $15M over 5 years

• Membership fees• Charges for use of facilities• Collaborative pre-competitive research projects• Sponsored focussed research projects

§ IPR owned by project sponsors

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ukAdvanced Functional Materials Centre Business Model

§ AFMC is an open access laboratory on Teeside, Northern England that is scaling up nanoparticle production processes

§ It will address applications in FMCG, healthcare, textiles and electronics sectors

§ Major industrial partners have committed over $7 million and further funding from regional and national government is being sought

§ Revenue Stream $18M over 5 years• Memberships fees• Collaborative projects• Client specific projects• Regional support grants

§ IPR ownership by AFMC will be minimal but significant know-how will be generated

§ Complementary to White Rose Nanofactory