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