Technology Commercialisation System

Richard LinleyAssociate Consultant

IIS - The Company

• Established 1983

• Turnover c. £1 million 2004/05

• 11 Employees

The Services

• Incubation/Technology Acceleration

• Innovation & Technology Transfer

• Regional Economic Development

• Cluster Development

What is TCS?

• Proven process to guide technology developers to successful product commercialisation

• A documented framework providing route map, tools, templates, show-how and coaching for case managers and clients

What is TCS?

• A Process for picking winners, analysing and reducing risk

• A Process for preparing for Private Equity investment

Who should use it?

• Start-up companies• Established companies launching

new products• Universities commercialising

technology• Technology Accelerators and

Incubators

Track Record

• Raised $370 million in 3 Years for 75 start-up companies in one incubator

• Used in Okalahoma, Kentucky, Arkansas and by NASA

• Raised $36 million for 16 companies in UK in one year (2 AIM listings)

Enables

• Intellectual Property Ownership• Proprietary not commodity • Enabling technology not incremental• Market disruptive• 10x growth factor• Low switching cost• Low education factor

What do Investors Look For?• Great deals not good deals• Exceptional ROI• Dominant competitive advantages• Proven management• Large and growing markets• In their comfort zone• Synergy with other portfolio

companies

When is it used?

Company Stage of Development

Investigation Feasibility Development Introduction Growth

Entrepreneurs – The Agony & The Ecstasy

Technology Commercialisation System

The Model & The Process

Step 16BusinessGrowth

Step 13Production

Step 10Pre-Prod.Prototype

Step 7Engineering

Prototype

Step 4TechnicalFeasibility

Step 1Technical Analysis

Technical

Step 17Market

Diversify

Step 14Sales &

Distribution

Step 11Market

Validation

Step 8MarketPlan

Step 5MarketStudy

Step 2Market

Assessment

Market

Step 1 Investigation

Step 2

Step 3

Step 4

Step 5

Step 6

Feasibility

Development

Introduction

Growth

Maturity

Technical Due Diligence

Contacts

Data/ Resources/ Contacts/ Information/ Reports/ Expertise

Show-how/ How-to/ Skills Transfer

TCS Model & Process

Step 18BusinessMaturity

Step 15BusinessGrowth

Step 12BusinessStart-Up

Step 9Business

Plan

Step 6EconomicFeasibility

Step 3Venture

Assessment

Business

Business Plan

Template

Quick-look market

research

The Process –

Where Are You Now?

TCS AnalysisTCS Analysis

• Tools & Show-How for due diligence• Confirms the technology works & has

market potential• Assesses latent risk in business model,

market, technology management, execution & funding

• Provides decision support tools to identify potential winners

Technical & Technical & Market Due Market Due DiligenceDiligence

CommercialisationCommercialisationWork PlanWork Plan

CommercialisationCommercialisationWork PlanWork Plan

• Identifies outputs, resources required, service providers, costs and due dates

• Keeps client focused• Simple planning tool and reference

manual• Defines tasks to be completed before

next funding round

• Interactive Q & A tool• Enables realistic business valuations• Highlights areas of risk/improvement• Enables client to demonstrate he/she

is managing risk and investors’ money responsibly

Business Plan Business Plan EvaluationEvaluation

• Method & Tool to Value the Business pre-funding

• Discounts the value objectively to give a fair price

• Enables client to calculate how much equity to offer for the funding they need

• Puts client in control of the negotiation process

Business ValuationBusiness Valuation

• Show-how/template and checklist for successful presentation

• Up to two years work – down to 20 mins

• 30 seconds to grab the investor’s attention

• Get it right FIRST TIME

Investor Investor PresentationPresentation

CapitalCapitalFormationFormation

• Full completed and documented task history

• Validated technology in High-growth market

• Complete management team with track record of succeeding

• High scoring Business Plan and Business Model

CapitalCapitalFormationFormation

• First Sales• Exceptional Return On Investment• Managed risk profile• Realistic discounted valuation• Professional presentation

= INVESTMENT READY