Taking Research to Market

How to Build and Invest in Successful University Spinouts
Erscheinungsjahr 2004
ISBN: 978-1-84374-132-9
Verlag: Euromoney

Buch, Englisch, 249 Seiten

Your step-by-step guide to successful spinouts. With 16 illustrative case studies and contributions from over 30 industry experts from around the world. This book ensures you are armed with the knowledge to finance and build a successful university spinout.

If you are an academic involved in research, this book is your guide to understanding how to commercialise your inventions by being able to identify commercial opportunities early. Find out what to do before embarking on a spinout, examine the various possibilities, enhance your chances of winning both early customers and venture capital and how to achieve your entrepreneurial dreams.

If you are a venture capitalist, this book describes what motivates academics and guides you through to a successful global exit.

"With a growing range of technological opportunities and more intense global competition, exchanging knowledge and working in partnership are becoming increasingly important for successful innovation. This book provides a useful contribution to best practice guidance in launching, nurturing and successfully growing spin outs." From the Foreword by Lord Sainsbury of Turville, Minister for Science and Innovation, UK

"This book.illustrates that entrepreneurship is neither easy nor straight-forward, but the rewards along the journey more than compensate for the effort and commitment." From the Foreword by Kenneth P. Morse, Senior Lecturer and Managing Director, MIT Entrepreneurship Center

"What a great line-up of insightful chapters by leading global experts in the field sharing knowledge of best practice in launching, nurturing and successfully growing spinouts!" From the Foreword by Mizuhiko Hashimoto, NIF Ventures Co Ltd, Japan

"Creating sustainable business advantage from the science base is a key must for economic progress. This book should help those in early stage university spinouts, but it will also be useful to anyone starting a technology based business." Sir Robin Saxby, Chairman ARM Holdings plc and Visiting Professor University of Liverpool, UK.

"The process of turning raw research into real companies is a high art that far too few technologists and venture capitalists understand. This book gives the full picture from A to Z and is an important contribution." Ken Gullicksen, General Partner, Morgenthaler Ventures.

Autoren/Hrsg.

Tang, Kenny

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Management Forschung & Entwicklung (F&E), Innovation
• Wirtschaftswissenschaften Betriebswirtschaft Management Unternehmensgründung
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Finanzierung, Investition, Leasing
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Unternehmensfinanzierung
• Wirtschaftswissenschaften Wirtschaftssektoren & Branchen Öffentlicher Dienst, Öffentlicher Sektor
• Interdisziplinäres Wissenschaften Wissenschaften Interdisziplinär Universitäten, Wissenschaftliche Akademien, Gelehrtengesellschaften

Inhaltsverzeichnis

Author biographies

Foreword by Lord Sainsbury of Turville,
UK Minister for Science and Innovation

Foreword by Kenneth P. Morse,
Senior Lecturer and Managing Director,
MIT Entrepreneurship Center

Foreword by Mr Mizuhiko Hashimoto,
General Manager, International Investment Group,
NIF Ventures Co., Ltd

Editors’ preface

Part I: Introduction

Chapter 1: University spinouts: what are they and how do they work?
Dr Kenny Tang, Ajay Vohora and Roger Freeman
What are university spinouts?
Why are university spinouts attractive?
The purpose of this book
Why such a book and why should it be read?
The structure of the book
How to use this book

Chapter 2: Components of a university spinout: aligning goals, drivers and expectations
Dr D. Jane Bower and Dr Kate L. Farmer
Introduction
The researcher
The university
The technology transfer office (TTO)
The investor
Bringing the components together
Successful spinouts are built on teamwork
Conclusion

Chapter 3: Academic enterprise and sustainable wealth-creation
Bob Smailes and Sarah Cooper
Introduction
Why are universities engaged in commercialisation?
External drivers
Internal drivers
The impact on university policies and procedures, and the role of the TTO
Ensuring sustainable wealth-creation

Part II: Preparing for spinout

Chapter 4: Achieving proof of concept
Matthew McCooe
Introduction
The disconnect between basic science and investor readiness
Bridging the innovation gap
Proof of concept – what is it?
A golden opportunity for inventors and investors
What does it take to achieve proof of concept?
Funding proof of concept
Lessons learned

Chapter 5: From research to spinout and beyond – a venture capitalist’s view
Dr Michael H. Gera
Navigating through the long journey
What can a university do to really help?
Building relationships with venture capital funds
Conclusion

Chapter 6: From discovery to market opportunity
Dave Sands
Introduction
The innovation ‘compass check’
Navigating the first terrain on the innovation journey – idea generation
Navigating the second terrain on the innovation journey – idea selection
What next?
Tips for entrepreneurs

Chapter 7: Intellectual property management
Renee Rottner
IP building blocks
Invention and ownership
Managing the disclosure process
Commercialisation considerations
Summary
Annex A: Record of Invention & Disclosure Report (‘Disclosure’)
Annex B: Initial Invention Assessment Report (‘Assessment’)

Chapter 8: Selection, recruitment and development of the spinout management team
Dr Claire Baxter, Dr Phillip Wing, Ben Anderson and Sebastian Kayll
Introduction
Understanding management capabilities
Defining management capabilities
The evolution of management capabilities
How can board members and investors help?
Getting the most from professional search firms

Part III: Financing the spinout

Chapter 9: Developing winning business plans
Keith Arundale
Introduction
Essential areas to cover in the business plan
Risk management aspects: a note of caution
Tips on the presentation of the business plan
How to use your business plan
Final advice

Chapter 10: The role of business angels
Kjell Nace and Charles Cotton
Introduction
What is a business angel?
The different kinds of business angels
Motivations of business angels
Interaction of business angels with other investors
Summary – advantages and disadvantages of business angels

Chapter 11: Approaching, presenting and selecting investors
Hazel Moore
Introduction
Preparation
Contacting investors
Selection of investors

Chapter 12: The process of due diligence for university spinouts
Dr Hermann Hauser and Richard Anton
Introduction
What the VC is looking for
Due diligence: the steps in the process
Some tips for preparing for the due diligence process
Appendix: Checklist for legal due diligence

Chapter 13: Structuring the transaction: the key elements
David J. Brophy and Wassim R. Mourtada
Introduction
The venture capital fund
The venture capital deal process
Methods of valuing startups
Conclusion

Chapter 14: Structuring the transaction: term sheet and deal structure
David J. Brophy and Wassim R. Mourtada
Introduction
The term sheet: summarising the deal structure
General control
Conclusion
Appendix: Summary of proposed terms and conditions for
University Research Commercialization, Inc. 30 June 2004

Part IV: Running the spinout

Chapter 15: Strategic design and risks mitigation in emerging technology
Ellie Runcie
Introduction
Strategic design – humanising technology
Critical success factor 1: strongly connecting to new and
emerging market need
Critical success factor 2: understanding and mitigating risk

Chapter 16: Organising to sell: pipelines versus pipedreams
Giffin Lorimer and Colin Spiller
Introduction
Getting started – the sales and marketing plan
Proposition
Prospects
Proposal
Payment
Lessons learned; tips for entrepreneurs

Chapter 17: Building and managing productive relationships with investors
Iain Wilcock
Introduction
Characteristics of successful investor relationships
The need for a communication plan
Developing a balanced management style
Monitoring investments and influencing change
Investor representatives and non-executive directors
Active support or interference?
Tips for entrepreneurs

Chapter 18: Post funding challenges and opportunities: the value of venture capital
Ravi Belani
Introduction
Building a business
Getting assistance with key challenges and opportunities
The value of venture capital
Exploiting an investor’s resources, networks and knowledge
Tips for entrepreneurs

Chapter 19: Adding value – strategic alliances and corporate partnerships
John O’Donohue, Chris Winter and Dr Kenny Tang
Introduction
Developing a win-win situation
Corporate research and development laboratories: adding value?
Response: spin in or spin out?
Corporate R&D: in-house or outsource?
Corporates’ competitive responses
Strategic alliances: benefits to spinouts
Strategic alliances: risks to spinouts
An optimised model
Lessons for spinouts on how to build and exploit
corporate connections
Summary

Chapter 20: Active portfolio management: the Imperial College case study
Susan Searle, Brian Graves and Dr Kenny Tang
Introduction
Management of spinout companies – what is an active approach?
An active approach versus a passive approach
Resources to implement an active approach
Appendix: Press Release – Imperial College builds spin-out partnership for future growth