Académique Documents
Professionnel Documents
Culture Documents
Riga, 21.09.2011
Importance of H-tech sector
• Not only is the volume of funds raised for venture capital investment in
the US some five times the European total, but a far higher
proportion of equity investment is directed in the US towards high
technology sectors.”
3500
3000
2500
1000
?
500
0
• Yeda’s mission:
1. To allow society to benefit from discoveries made at
Weizmann.
2. To create an additional source of income to the institute so
that more independent research can be conducted.
Development of IP
Contract
research
University
Research
MARKET
Organization
Licensing
Creation of new
company
What Technology Transfer is about?
• Technology Transfer is a contact sport… it is about building relationships
• Technology Transfer programs are expensive
– It takes 10 to 15 years for an office to generate enough revenue to off-set
their expenses
– One “winner” may make enough money to pay for an office…but most
technologies do not generate significant income
• Technology Transfer programs do more than commercialize technology
– Build relationships with the business community
– Build relationships with the financial (Venture Capital) community
– Improve community awareness of institutional research activity
– Provides institutional participation in economic development
– Educate Faculty and Students about intellectual property, market research and
commercializing innovative technology
• Technology Transfer is a long-term process
– From the time a patent is filed until revenue is coming to the institution can
be 10+ years
University culture
Research to educate, break ground, provide
service (economic development)
Pace is slower
Mission = basic and applied research
Technology transfer activities are companion
to applied research mission
Industry culture
Mission toward research / R&D / commercialization
Quick-paced
Solve problems - develop new products - profit
Maintain control of science to explore full potential of discovery
(initially)
Direct and indirect economic impact
Lessons from Israeli Tech Transfer system
100 patent
300 inventions rejected applications filed
© Yozma Proprietary
Yozma Drop-Down Funds (2)
FUND CAPITAL MANAGED ($MM)
Original size Today
•Eurofund 20 90
•Gemini 25 350
•Inventech 20 40
•JPV 20 580
•Medica 20 70
•Nitzanim-Concord 20 280
•Polaris 20 645
•Star 20 400
•VERTEX 20 250
•Walden 25 175
210 2,880
© Yozma Proprietary
Government Vs. Private Investments
in Incubator Graduate Projects
,
,
Private
,
Thousand Dollars
,
Government
,
,
Lessons from Israeli Tech Transfer system
Venture capital funds and “angels” are the most important sources for •
investment funds
The major difficulties: •
Fund raising –
Establishment of business contacts: strategic partners and –
marketing
Protection & management of IPR –
The most meaningful government assistance: •
Promoting the establishment of VC funds through the –
Yozma program
Industrial background and experience enforce the creation of successful •
enterprises
Investment s in R&D promote an “R&D culture” that becomes a breeding •
ground for entrepreneurs and entrepreneurial ideas
The incubators program provides a “ balancing” measure to concentrating •
in few market trendy industrial sectors
The involvement of “angels” and other individuals in funding the surge of •
establishing start-ups needs to be evaluated
Knowledge Transfer Platform
Sources of knowledge (PROs and others)
Technologies
Technologies Technologies with
with with commercial
commercial commercial potential
potential potential
New Technology
Ventures Transfer
Reactor Business
Developers Jauni produkti/ tehnoloģijas
Jauni produkti/
esošiem tehnoloģijas
uzņēmumiem
Jauni produkti/ tehnoloģijas
esošiem uzņēmumiem
New technologies
esošiem uzņēmumiemin existing
companies
Preseed
Pirmsinkubācija
Inkubācija
INCUBATION
GLOBAL TECHNOLOGY MARKET
International companies
Technology brokers
Role of TTO EXECUTIVE MARKETING ROLE:
Contact network development/ EXPERT ROLE:
international marketing Repository of best practices and
• Marketing of Technology licensing model contracts
Collaborative research deals/ contracts
Latvian based on IP portfolio
Partnership-building within NIS and
other innovation schemes
technologies Latvia-based JVs (inward investment) Support to LiOs in educational tasks and
building interface with local companies
Process
Technology
and researcher New New investment
+ enterprise opportunity
Entrepreneurs
Results of Commercialization Reactors
Matchmaking (individual
46 60 50 30
meetings)
Signed MoU 3 6 9 6
Conventional incubators offer “heat, light and dial tone”, but “Smart” Venture
Investment claim to offer more, developing ideas and incubating them in-house
as well as providing late seed capital and A, B and C round investment.
Incubation today is seen as a way in which capital can be efficiently
applied to support new technology businesses
Incubation Period
- Business Planning & Modeling
- Marketing Intelligence & IP Strategies
- Global Business Development & Executive
Mentoring Mentoring
- Infrastructure
Chairperson & Administration
Execution Technology
CEO Founder
Entrepreneurship in education and pre-incubation
concept
Source: Zeps, V., Avotiņš,V., ( 2010). Critical Conditions to Establish Efficient Incubation Cycle in Latvia. Proceedings of the
XXI ISPIM Conference. Bilbao, Spain, 2010 (ISBN 978-952-214-926-8 (2010))
Key elements of BI system
Source: Zeps, V., Avotiņš,V., ( 2010). Critical Conditions to Establish Efficient Incubation Cycle in Latvia. Proceedings of the
XXI ISPIM Conference. Bilbao, Spain, 2010 (ISBN 978-952-214-926-8 (2010))
Latvia – selected initiatives in
pre-incubation stage
Promotion and Awareness
◦ Student Companies(Junior Acheiveivement Latvia)
◦ Business Men in 5 days (Training + Consultations)
◦ Idea Cup (Training + Consultations + Awards)
◦ ALTUM (Training + Consultations + Credits/ Grants)
Business laboratories
◦ Business lab of SSE Riga
Mentoring
◦ SSE Riga MC
◦ SO “Līdere”
Investment Rediness
◦ CONNECT
◦ SEED Forum
◦ Pre-seed facility
Israeli TI performance
• TI operation grant max 300 kUSD / two Years
• 23 incubators, budget 20 MUSD in 2004
• Graduates rate versus entrants no. 84%
• Long-term survival rate 34%
• Fails ~50%, from them during incubation 19%
• Further investments receive 50% graduates in avg 0.9-1.0 MUSD
• 50% graduates reach 0.1 MUSD sales, 27% - 0.1-0.5 and 23% -
0.5-5.0 MUSD respectively
• 0.41 MUSD per graduate in 14 years, 20% pays back seed loans
• Extremely important in VC industry creation (40% of all high
tech start-ups created by TI) and to cover seed investment gap
• Privatised 12
Naiot, Israel at a glance
• An Incubator working under Israel’s OCS TIP (operational grant
1.8MUSD per 6 years; 35% of total TI budget)
• Acts as a VC willing to take higher development risk
• Fully owned by the OHTG, acquired in 1997
• Makes 4 to 6 $500K investments annually, 8-10 NTBC in incubator
• Graduated companies raised >$140M
• Best Incubator Award five years in a row
• Hands-on management
• Investing in Medical Devices (70%), software (20%) and
miscellaneous (10%)
• Seed finance: 200 kUSD from Private HT matched with 300 kUSD
public loan
Incubator Network
Innovation Centres and Business
Incubators 2007-2008
5 Pre-Seed projects
(MolPort, Naco Technologies,
BuzzPodium, E-Tag, Blue VC
Bridge Technologies) Funds
Seed
Pre-Seed Funds
Funds
• Services ?
“Green” industry Technology incubator
Program still in design phase
• Timing:
– April 2012, programme proposal accepted by the donor
representatives;
– May 2012, procurement documentation completed and
procurement commenced;
B. The designed draft
Growth4Future Scheme
1. Technology incubator grant
2. Pre-seed grant – Think for month
3. Seed soft loan (I and II)
Management companies or Operators Target groups:
of TI’s – private companies providing
space & infrastructure, management – Potential
and S&M advice, basic business entrepreneurs from
services and private investment industry
structuring in exchange for equity – Potential
position in the tenant company
entrepreneurs from
academia
Tested in Israel, with WB experts, EU experts, local expert panels
– Repatriating
scientists and R&D
personnel
SUCCESS STORY – MOTIVATION PROGRAM, INTRAPRENEURIAL
TECH TRANSFER, VENTURE CAPITAL FUND, BUSINESS INCUBATOR
=> HITACHI HOME ELECTRONICS BUYS LICENCE FROM LATVIAN
COMPANY
CONEQ is a patented technology that corrects and
improves the response of all manner of loudspeaker
systems ranging from studio monitors to concert
arrays.