Post on 31-Dec-2015
description
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 1
Venture Capital funding of public spin-offs
OECD workshop on high-technology
spin-offs from public sector research
Paris, December 8th, 1999
Risto Kalske
Director, Technology Transfer
risto.kalske@sitra.fi
SITRA, Finnish National Fund
for Research and Development
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 2
Sitra’s structure: principals and functions
Finnish ParliamentFinnish Parliament
Supervisory BoardSupervisory Board
Board of
Directors
Board of
Directors
Management Management
Research Training Innovative operations
Financing of technology companies International funds
Regional funds Commercialisation of technologies
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 3
Sitra’s Operational Sectors
Corporate finance
Seed finance and commersialisation of technologies
Investments in venture capital funds
Research and innovative operations
Training
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 4
Seed and start-up Growth stage Strategic investments
SitraVenture Capital
60 (148 Mmk) 42 (227 Mmk)
Privatised part of Sitra
Bio Fund Management Oy Eqvitec Partners Oy Sitra Fenno Management Oy
Sitra Bioventures Ky Eqvitec Tech Fund I Ky Fenno Program
(Sitra 30%, man. 70 %), 0,5 Mmk(Sitra 31%, managers 69%), 0,3 Mmk
Investments in fundsDirect investments
74 Mmk74,5 Mmk
16 (40 Mmk)
102 (375 Mmk)
25 (145 Mmk)
48 (201 Mmk)
5 (150 Mmk)
Regional funds
(Sitra 40%, managers 60%), 0,8 Mmk
155 pcs (726 Mmk, 155 pcs (726 Mmk,
ECU 121 million)ECU 121 million)
155 pcs (726 Mmk, 155 pcs (726 Mmk,
ECU 121 million)ECU 121 million)
Tech.transfer7 (16 Mmk)
Inv. in technology transfer
Sitra's Venture Capital ActivitiesSitra's Venture Capital Activities
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 5
Clear tendency from public to private investments as the VC business matures
0 %10 %20 %30 %40 %50 %60 %70 %80 %90 %
100 %
1993 1994 1995 1996 1997 1998
Public
Private
Source: FVCA
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 6
Motives for VC investment; public investments shift to the early stages
0 % 20 % 40 % 60 % 80 % 100 %
Seed
Start-up
Other early stage
Expansion
Bridge financing
MBO
MBI
Turnaround
Private
Public
Source: FVCA
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 7
Domestic venture capital companies
Sitra focuses on seed & start-up financing Sitra focuses on seed & start-up financing
SitraSitra2nd round
(Sitra) (3rd round)
International financing
Tekes
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 8
24 %
25 %32 %
5 %
1 %
13 %Growth firm finance
Seed finance
Venture capitalfunds
Research
Training
Innovativeoperations
Breakdown of Sitra's funding in 1998
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 9
Business maturity within Sitra’s portfolio companies in 1998
Start-up
Early growth
Rapid growth
Exit / Transition Seed
TOTALTOTAL102 companies102 companiesEUR 63 millionEUR 63 million
TOTALTOTAL102 companies102 companiesEUR 63 millionEUR 63 million
24 companies
EUR 17.8 million
24 companies
EUR 17.8 million
27 %27 %
13 %13 %13 %13 %10 %10 %
27 %27 %
23 %23 %23 %23 %
23 companies EUR 14.2 million
23 companies EUR 14.2 million
36 companies, EUR 6.9 million36 companies, EUR 6.9 million5 companies, EUR 7.8 million5 companies, EUR 7.8 million
14 companies
EUR 16.1 million
14 companies
EUR 16.1 million
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 10
Industrial distribution
within Sitra’s portfolio companies in 1998
TOTALTOTAL102 companies102 companiesEUR 63 millionEUR 63 million
Biotechnology (11 co.)
Chemical industry (7 co.)
Transportations (3 co.)
Medical companies (22 companies)
Other electronics (17 co.)
Other manufacturing (2 co.)
Control and monitoring (7 co.)
Industrial production (13 co.)
Information technology (9 co.)
Communication (5 co.)
5.2 m
4.7 m
1.4 m
2.7 m
18.8 m
7.5 m
1.3 m
1.7 m.
10.4 m
6.0 m
3.2 m
Consumer goods (5 co.)
Travelling (1 co.) 159 000
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 11
Management network of the regional funds
Tekno Advisors Oy, Oulu (100%)
Sentio Invest Oy, Tampere (100%)
Aboa Venture Management Oy Turku 25,2%
Savon Invest Management Oy Kuopio (100 %)
Indekon Management Oy Lappeenranta (100%)
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 12
Network of regional funds
Teknoventure Oy, Oulu
Pikespo Invest Oy Ltd, Tampere
Spinno-seed Oy, Espoo
Indekon Oy, Lappeenranta
Midinvest Oy, Jyväskylä
Karinvest Oy, Joensuu
Savon Teknia Oy, Kuopio
Innoventure Oy, Helsinki
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 13
Network for technology transfer
Oulutech OyOulu
Tamlink OyTampere
Oy Aboatech AbTurku
Helsinki UniversityLicensing Ltd. Oy
Helsinki
Finntech FinnishTechnology Ltd Oy
Espoo
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 14
Public sector activities for R&D in Finland
P A R L I A M E N T
G O V E R N M E N T
Other ministries and theirinstitutes
Funds like: SITRA Kera Oy
Ministry ofTrade andIndustry
Ministry ofEducation
Academy ofFinland
UniversitiesTechnicalResearch
Centreof Finland
Science and
TechnologyPolicy
Council
NationalTechnology
AgencyTekes
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 15
Universities and technology transfer
• Universities and Sitra co-own 6 technology transfer companies in 4 university towns
• The technology transfer companies
• identify ideas with commercial potential
• evaluate technologies
• serve researchers in commercialising their idea (on a royalty sharing basis)
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 16
Future Development
• Harmonized practices to commercialise university IPRs
• Advanced Technology Transfer Network to
• offer professional licencing services
• enhance the birth of spin-off companies
• offer international Technology Brokearage services
• link the financing institutions to the spin-offs
• advice on suitable options to utilize the IPRs
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 17
Three approaches to the commercial utilisation of innovations
InnovationInnovation
Growth company
Acquisition vehicle
Sale/License of IPRs
• true entrepreneurship
• technology brokerage
• exit means
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 18
VC criteria - special concerns with spin-off firms
• Early stage• Professional management • Level of commitment • Business plan • Novelty value • Identified customer need • Ownership of the IPRs • Growth potential• Total financial plan • Terms of partnership• Exit plan
Spin-offs
© Sitra 1999 OECD.ppt / 8.12.1999 / Risto Kalske 19
Licensing is also a viable option for the commercialisation of IPRs
• Scientist and entrepreneurship - a rare combination
• The promotion of spin-off activities attracts top-notch researchers
• Financial benefits tend to supersede scientific calling
• Brain drain affects the quality of university research
• Professionally organised licensing may offer a balanced win-win solution in many cases
Thank you!
risto.kalske@sitra.fi