Calgary Technologies Inc.

Company Overview – June 2009

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• 1981 – Calgary Research & Development Authority• Founding partners & shareholders:

• 2000 became Calgary Technologies Inc.• NFP, NGO with autonomous Board of Directors• Exclusive economic development responsibility for

advanced technology/ knowledge intensive industries• Mission:

“To accelerate the success of the advanced technology community by helping companies to build, grow and connect.”

Who is Calgary Technologies Inc.

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Advanced Technology Sector Focus

Information & Communication Technology

SoftwareTelecomHardwareInternet

Life SciencesBiotechnologyBiomedicalMedical DevicesHealth Informatics

EngineeringSciences

Oil & gasAlternate energyMaterialsEnvironmental

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• Culture and Programs are “Entrepreneur-centric”• ARTC is a source of funding matching public sector funding• Private sector client focus (non-institutional)• Leverage local expert volunteers for program delivery• Facilitation model – do not fund or do the work• Independent - do not pick the winners / take equity• ‘A la carte’ – clients engage/disengage on demand• Low barrier to engagement - no or nominal client fees • Broad (many and short) vs. deep (few and long) client

engagements

CTI Business Model

Commercialization Area Focus

TechnicalAnalysis

TechnicalFeasibility

EngineeringPrototype

Pre-productionPrototype

ProductionProduction

Support

MarketNeeds

AssessmentMarketStudy

StrategicMarket Plan

MarketValidation

Sales &Distribution

MarketDiversi-fication

VentureAssessment

EconomicFeasibility

StrategicBusiness

Plan

Financingthe Venture& Business

Start-up

BusinessGrowth

BusinessMaturity

TechnologyDevelopment

MarketDevelopment

BusinessDevelopment

MatureCompany DevelopmentConcept

Goldsmith Model for Commercialization

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CTI Program Focus

Line of Business

Client Focus

Value Proposition

Business Model

Reach

ARTC‘Facilities’

• SMEs (startup to growth)

• Community Hub• Location• Business Centre• Flexible terms

• Market Lease Rates

• Operating surplus subsidize other lines of business

• 40 physical and 70 virtual tenants per year

• Community hub

BNCD‘Networking’

• SMEs• Industry Associations

• Gov’t Economic Dvlpmt Agencies

• Community Connection

• Local Knowledge• On the ground resources

• No or nominal client fees

• 300+ clients per year

TCI‘Coaching’

• SMEs• Entrepreneurs• Investors

• Expertise• Access to Capital• Access to HQP• Ala Carte offerings

• No or nominal client fees ($0 - $1800)

• 200+ clients per year

Advocacy‘Advising’

• SMEs • Gov’t Economic Dvlpmt Agencies

• Marketplace knowledge and connection

• N/A • N/A

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• Opened July 2000• 60,000 sq ft expanded to

120,000 sq. ft.• Location: University Research

Park• Executive office services plus

significant value-added

ARTC Services

• Critical mass & physical footprint• Gross margin invested into

operations & programs• New facilities include:

– Smart wired offices– Wet laboratories– Networking & commons areas

Alastair Ross Technology Centre

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Ø2008 Total: 114 clientsØ2008 Total: 114 clients

ARTC Client Mix by Type

Updated June 24, 2009

0

10

20

30

40

50

60

70

80

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Major Tenant

Incubator Tenant

Corporate Identity

Nu

mb

er

of

Com

pan

ies

Year At or near full occupancy since 1997

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• Assist in creation & sustainment of networking forums & associations.

- online database, events calendar, and information portal for the advanced

technology community and industry associations.

• Disseminate sector event & program information

• Facilitate business/entrepreneur matching•- Promote & recognize

achievements in the advanced technology community

BNCD ProgramsBusiness Network & Cluster Development

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TCI Programs

Entrepreneur Coaching Services

Financing Your Vision

EntrepreneurBoot Camps

ProgramFocus

Initial Entrepreneur Consultations – any stage or issue

Comprehensive Overview of financing alternatives

Investor-ready business plan and investor pitch coaching

Market Target

Entrepreneurs with ideas and issues with active businesses

Pre-financed startups with a business plan

Start-ups at or near revenue, seeking angel or VC capital

Format On demand with staff and Entrepreneur-in-Residence - no defined length

1 day seminar delivered by industry experts; offered quarterly

2 day seminars and mock investor panels; offered quarterly

Cost No cost but limited time

$ 300 $500

ClientsEngaged

~165 31 40

2002

2002

1997

Technology Commercialization and Incubation

Updated: Jan, 2010

2009

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TCI Programs

Go-To-MarketReadiness

Alberta Deal Generator

Innovate AlbertaVoucher Program

Program Focus

Develop market strategy and launch plans for growth companies

Connect growth companies with angel capital

Advise clients on application, match to service provider and administrate voucher program.

Market Target

Companies seeking assistance to launch new products

Start-ups seeking first round of external capital

Companies from concept to growth stage engaged in commercialization

Format Yearly 6 month workshop

4 forums per year in Calgary and Edmonton

Semi-annual program cycle – project length ~6 months

Cost $1800 $1500 + 2% success fee $1000 - $4000 based on voucher/project complexity

ClientsEngaged

9 25 ($1.4+ M raised) 33 ($650,000 project value)

2007

Updated: Jan, 2010

Technology Commercialization and Incubation

2003

2009

2009

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Key Community RelationshipsVenture Capital

(iNovia, Octane)

Angel Investors

AVAC/IVAC

AAET

WD

NRC-IRAP

IndustryCanada

DEFAITCity / CED

ServiceProviders

Industry SMEs

Entrepreneurs

IndustryAssociations

Program Delivery Support

FundingProgram

Delivery Support

Funding

Funding

Program Delivery

Reci

proc

al

Clie

nt R

efer

ral

Client Referral

Client Investm

ent

Program D

elivery

Client Investment

Program DeliveryClientsCoaches / Mentors

Clients

Coaches / Mentors

Clients

Program Delivery

Clie

nts

Prog

ram

Del

iver

y

Fund

er

Join

t Pro

gra

m D

eliv

ery

BanffVenture Forum

Spon

sor

Join

t Pro

gra

m D

eliv

ery

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Financial Summary 2008

CTI PROGRAM EXPENDITURES • TOTAL $4.8 M

22 % Advocacy and Administration23 % Business Network & Cluster Development18 % Tech Commercialization and Innovation37 % Alastair Ross Technology Centre

1 % Private Contributions 9 % Government of Alberta – AE&T and AED 10 % Government of Canada – WED and NRC

16 % City of Calgary 64 % Client Revenue – ARTC and Other

CTI FUNDING & REVENUE SOURCES • TOTAL $4.9 M

Updated: June 24, 2009

Government Alignment

• City: OED / CED Strategy• GoA: Task Force on Value Added

recommendations• GoA: Innovation System framework• GoC: ??

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Government Level

Example Alignment CTI Supporting Programs

Municipal City of CalgaryCalgary Economic Development

Calgary Economic Development Strategy:• Goal 2ii: Make Calgary’s key non-energy sectors

world-class competitors by a) addressing needs of SME’s and Entrepreneurs; b)providing innovation space; c) developing a top innovation system

• UIP/RIS Strategic Plan• ARTC III expansion• BNCD / TCI programs

ProvincialAAET

Task Force on Value-added and Tech. Comm.:• Recom. #2: Access to financing for start-up and

early-stage companies• Recom. #5: Business Development Centres

support• Recom. #7: Promote and support

entrepreneurship

• Alberta Deal Generator• Financing Your Vision• AAET Voucher Program• Entrepreneur Consulting• TechRev Program• INFOPORT.ca

FederalIndustry CanadaNRC-IRAPWestern Economic Diversification (WD)

WD 2009-10 Plans and Priorities:• Access to Capital, Technology Commercialization,

Business Development and Entrepreneurship, Smart Infrastructure Development

• Alberta Deal Generator• Entrepreneur Consulting• Go-to-Market Planning• TechRev Program• INFOPORT.ca• ARTC III

CTI Strategic Challenges

• Growth into emerging sub-sectors (e.g. Clean Technologies, eHealth)

• Attraction/engagement of angel investors• Increasing outcome impact on individual SMEs• Tracking/quantifying long-term

commercialization progress• Continuity and growth of public-sector funding• Attraction of meaningful private-sector funding

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