Transcript Slide 1

Technology Commercialisation System

Richard Linley Associate 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

Entrepreneurs – The Agony & The Ecstasy

Investigation Feasibility Development Introduction Growth

Technology Commercialisation System

The Model & The Process

Data/ Resources/ Contacts/ Information/ Reports/ Expertise Show-how/ How-to/ Skills Transfer TCS Model & Process

Technical Due Diligence Contacts Quick-look market research

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Investigation Feasibility Development Introduction Growth Maturity Technical

Step 1

Technical Analysis

Step 4

Technical Feasibility

Step 7

Engineering Prototype

Step 10

Pre-Prod.

Prototype

Step 13

Production

Step 16

Business Growth Market

Step 2

Market Assessment

Step 5

Market Study

Step 8

Market Plan

Step 11

Market Validation

Step 14

Sales & Distribution

Step 17

Market Diversify Business

Step 3

Venture Assessment

Step 6

Economic Feasibility

Step 9

Business Plan

Step 12

Business Start-Up

Step 15

Business Growth

Step 18

Business Maturity

Business Plan Template

TCS Analysis

The Process – Where Are You Now?

Technical & Market Due Diligence

• 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

Commercialisation Work Plan

Commercialisation Work 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

Business Plan Evaluation

• 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 Valuation

• 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

Investor Presentation

• 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

Capital Formation

• 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

Capital Formation

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

= INVESTMENT READY