New Enterprise

Dominique Kleyn

27th June 2003

Overview of Innovations

•Technology transfer arm of Imperial •Aim to maximise the value returned to Imperial from the commercialisation of intellectual assets and to support the attraction and retention of quality academic staff

•Transparent and equitable process to make money for the College and reward inventors

Experience & Diversity

•Working with 150 inventions per year

•Filing 1 new patent per week

•Extensive industrial experience

•Established licensing and spin-out processes

• Interdisciplinary working

Successes at Imperial

•Drug development eg Remicade, Temezolamide, Malavone

•Spin-out listing eg Turbogenset

•Portfolio sale eg Fleming

•Seed funding eg University Challenge

•Co-investment eg Nikko

Early years

•DTI headcount support (£750k)• Create Company Maker, establish spin-

out process, build support networks

•University Challenge Seed Fund (£4m)• 2 tier investments, external advisory

committee, rigorous assessment process

•Science Enterprise Challenge (£2m)• Entrepreneurship Centre established,

entrepreneurs programme introduced

Period of growth

•Rapid formation of spin-outs

•Rapid growth of Innovations team• increases from 5 to 25 FTE

•New finance initiatives

• NIKKO – extending UCSF

• Fleming – realising equity

• Paul Capital - royalty sale

Innovations 1997 to 2002

Spin-outs formed 53

Licence income circa £7.1m

Development income circa £15m

Equity realisation circa £20m

Finance raised £136m+

Spin-out jobs 500+

Innovations approach

• Inform & educate

• Identify & assess

•Protect & publish

•Explore & exploit

•Develop & maintain

Well trodden path

Proactive support

Pre seed Seed Venture

CONSULTANTS

• Founders

• Project leader

• Professional advisors

INTERIM MANAGERS

• Project support

• Company board

• Friends and Mentors

EXECUTIVE TEAM

• Company board

• Advisory board

• Portfolio management

Finding the right finance

•Lumpy process for early stage technologies

•Gap at proof of concept stage < £3m

•Unfavourable terms at development stage - typically 5-10 yrs research before commercialisation

•Lack of exit opportunities even at commercialisation stage

Overseas Alliances

•Exploit Technologies Singapore and University of Columbia New York

•Leverage opportunities for international development of spin-outs

•Access to international networks of investors and industrial partners

•Technology exchange and joint commercialisation

•Further understanding of commercial needs

Investor network

•NIKKO £20m co-investors

• Imperial FF&P Gordon House LLP

•Corporate finance groups

•Access private money

•BML Medical & Life Sciences Fund

• £250k to £3m

• Co-invest with other external investors

Funding for Innovations

•Service fees from College and industry

•Balance of spin-outs and licences• Limited ability to fund technology

development before licensing• Equity squeeze for those unable to follow on• Diminished returns to universities

•Development fund management fees

•Commercialise industry’s unexploited IP

Conclusions

•Technology transfer has been transformed by spin-out activity

• Imperial has developed a supportive environment for commercialisation

•Access to funding and management expertise is key

•A critical mass of activity has been achieved