E WIPO-IFIA/SEL/02/24 ORIGINAL: English DATE: December 2002 INTERNATIONAL FEDERATION OF INVENTORS’ ASSOCIATIONS WORLD INTELLECTUAL PROPERTY ORGANIZATION WIPO-IFIA INTERNATIONAL SYMPOSIUM ON THE COMMERCIALIZATION OF INVENTIONS IN THE GLOBAL MARKET organized by the World.
Download ReportTranscript E WIPO-IFIA/SEL/02/24 ORIGINAL: English DATE: December 2002 INTERNATIONAL FEDERATION OF INVENTORS’ ASSOCIATIONS WORLD INTELLECTUAL PROPERTY ORGANIZATION WIPO-IFIA INTERNATIONAL SYMPOSIUM ON THE COMMERCIALIZATION OF INVENTIONS IN THE GLOBAL MARKET organized by the World.
E WIPO-IFIA/SEL/02/24 ORIGINAL: English DATE: December 2002 INTERNATIONAL FEDERATION OF INVENTORS’ ASSOCIATIONS WORLD INTELLECTUAL PROPERTY ORGANIZATION WIPO-IFIA INTERNATIONAL SYMPOSIUM ON THE COMMERCIALIZATION OF INVENTIONS IN THE GLOBAL MARKET organized by the World Intellectual Property Organization (WIPO) and the International Federation of Inventors’ Associations (IFIA) in cooperation with the Korean Intellectual Property Office (KIPO) and the Korea Invention Promotion Association (KIPA) Seoul, December 4 to 7, 2002 PARTNERING WITH VENTURE CAPITALISTS AND FINANCING THE DEVELOPMENT AND COMMERCIALIZATION OF INVENTIONS Document prepared by Mr. Stephen Ong, Managing Director, Asian Direct Capital Holdings Sdn Bhd., Kuala Lumpur 1 CyberBay Technology Incubation Model Mr.Stephen Ong Internet Investment Management Research (UK) Ltd (IIMR Asia Ventures Sdn Bhd) 2 Project Goals To incubate technology companies from the talent pool supporting the technology industries in Asia To introduce the San Francisco Bay “Silicon Valley” development capital model for nurturing technology startups To prepare companies for listing on technology stock exchanges 3 Project Positioning Technology Venture Startups Singapore1998 Malaysia 1998 National Projects Government Initiative CyberBay 2000 Penang Cyber-Port 2001 Hong Kong Entrepreneur Driven 4 Characteristics of Technology Clusters 5 Regional Characteristics Comparison Silicon Valley Silicon Island California Penang Established Industries Talent Pool Semiconductors Software Biotechnology Hardware Semiconductors Healthcare Universities Californian Universities & Research & colleges Universiti Sains Msia Universiti Utara Msia Stanford Royal Melbourne Inst of Technology campus Pillar HighTech Cisco, Hewlett-Packard Intel, Dell, HewlettCompanies Intel, Yahoo!, Packard, Hitachi, Genentech, Amgen Motorola, Allergan, BBraun Investment 32% of Internet IPO 13% of IPO Activity 1996 Climate Activity 1997-1999 Quality of Life Second highest commercial & housing rentals in USA Comparatively lowest rentals in Asia Pacific 6 Silicon Valley Model 7 CyberBay Incubation Model Technology Projects Management Co Management Expertise Corporate Services Venture Funding Technopreneur •Listing •Development Project •White Paper Technology Partners Strategic Advice Tech Platform Hosting Services Property Management Co Location Facilities Services 8 CybErBAY Technology Commercialisation Project Property Management Co Technology Partners Property Lease/Rental Pool Property Services Central Office Administration Provide Technology Platform Maintain Hosting Facilities Education & Services Technology Projects Management Co Technology Research Advisory Panel Technology Partner Rep Applications Adviser, Corporate Adviser Whitepaper Evaluation & Arbitration Research Strategy & Map Technology R&D & Govt Relations Financial Adviser Accountants Network Company Secretarial & Admin CFO, Financial Control & Budgets Stockholders Program IT Applications Adviser Strategic Technology Partners Technology Platform Plan Smart Business E-Partnerships Human Resources Network Corporate Adviser Venture Capital Network Corporate Finance Plan Investor Relations IPO Program & M&A Legal Adviser International Legal Network Memorandum & Contracts IPO Documentation & Compliance Intellectual Property & Licensing Technology Project Incubation Partnership Offices Silicon Valley, USA London, Europe Overseas Business Partnerships Corporate Migration Program Incubator Hub Alliances Technology/Intellectual Property Development Business Development 9 Technology Project Life Cycle Capital Issue US$m Staff Costs US$m IT Expenditure US$m 50.0 + th s m 24 m 924 m th s 5.0 318 th s m 412 13m th s 0.1 10.0 th s 1.0 35 30 25 20 15 10 5 0 10 Incubation of Hotmail.com 6,000 Investment US$m Subscribers (100,000) Incubator + Venture Capital = 400 0.300 m th s+ 24 4m th s -2 19 13 -1 8m th s m th s 12 4- 1- 3m th s 0.010 200 180 160 140 120 100 80 60 40 20 0 11 Ideas x Capital + Incubation = Success eMusic.com with Incubation (US$m) Cductive.com without Incubation (US$m) 150 100 (Success : 1 in 3 startups) 31 24 m th s+ 24 m th s 50 Still needs US$10m after 27 months (Success : 1 in 10 startups) 0 19 - 13 - 2m th s 18 m th s 4.0 41 m th s 13 209 = Nasdaq listing in 18 months + 0.01 200 200 12 Internet Projects in the Real World Ground 0 1-3 months Stage I 4-12 months Stage II 13-18 months Stage III 19-24 months Staff Resources 3 12 25 100+ Capital Issues <US$0.1m US$1.0 - 2.0m US$5.0 – 7.0m US$10m+ Investment Source Technoentrepreneurs Angels VC Tech Funds Investment Banks, VCs Real World E-Projects China.com ThirdVoice.com AsiaTravelNetwork 13 CyberBay Venture Capital Partners Transpac Capital 14 CyberBay building Asia’s future Technology Companies with strategic partners to access creative venture capital Questions & Answers Session 15