Transcript Technologies are Boring

Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605
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Gerard Eldering is Founder and President of InnovateTech Ventures, specializing in
venture creation based on inventions licensed from universities and research
institutions. Since the company’s founding in 2007, InnovateTech has supported
numerous mid-Atlantic universities and co-founded three start-up companies
including AlphaDetect and Trilumen. Gerard has been working in the technology
transfer community for more than a decade and is passionate about the creation of
professionally managed and funded start-up companies. Prior to launching
InnovateTech, he founded and served as Director of the Technology Transfer Office
at The MITRE Corporation. He is an MBA and a registered patent agent.
Bill St John is experienced in strategic intellectual property protection, licensing,
university-industry relationships, corporate partnerships, strategic planning, due
diligence, venture financing, corporate development and management of diverse
teams and operations. Over the past 25 years, he has started and managed five (5)
successful technology companies based on technology licensed or developed at
university or government laboratories. Exit strategies for these ventures included
public markets, merger and acquisition. In addition to these positions, he has served
as a Managing Director of an early-stage venture fund. Currently, Mr. St John serves
as Managing Director of Sciencejump Advisory Services that provides a range of
services to start-up companies, investors and various technology transfer offices. He
was a founder of Sciencejump.com and Reciprocal Sciences LLC.
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605
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Differentiated Technology:
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the “next bold step” in an “up-trending
technology class”
Enables a “shrewd business model”:
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technology is integral to quick returns for investors.
$500M to $1B Market Potential (w/ Deal flow)
Proven Management Team In Place
Strong IP With Little Science Risk…
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manageable translation…execution risk
A “Sellable” Scientific Team and Package
Little Work
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 3
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VC Funds Have to Produce a 21% IRR
Consider 10 Investments:
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3 winners, 3 land of living dead, 4 failures. (seed
2/3/5)
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IRR Dependent On:
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amount of money invested, early exit,>10X return
A Venture Capitalist Makes 2 Deals Per Year
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time is limited
Need Support From Other VCs To Partner
With Them
VCs Report To Their Investors
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 4
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Reduced Chance of Success
- 2 winners, 3 land of living dead, 5 failures.
(versus 3/3/4 for later stage)
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Requires >10X Returns
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Big Time Requirement
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Lack of Management and a Refined Plan
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 5
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Non-Differentiated (herd mentality)
Not Attached to Differentiated Business Model
Data is Lacking
( poor models, one up manufacturing, insufficient sampling)
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Address Smaller Markets
or market hasn’t been identified
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Non-Differentiated Science Team
No Management or Unproven Team
A Large Amount of Work Involved
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 6
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Showing them the wrong “stuff”
- Too small – e.g., a great $5 million company
- Improperly packaged – a broad technology focused on a
small humanitarian market
- No management team/entrepreneur
- Approaching the wrong fund at the wrong time
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Avoiding those mistakes
- Know what is a VC deal and how it needs to be packaged
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 7
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Educate Researchers Early in Their Project as to
These Requirements
Encourage External Involvement Early in a
Project
Packaging Technology (staging) so VCs Can See
the Opportunity
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 8
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 9
Problem:
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Drug Delivery (DD) Technologies are Boring
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Classic DD Business Model is Flawed
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Data Was Lacking
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IP is Weak for DD Class
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Two institutions Involved
“there are a Million of them.”
(weak testing)
complicated TT work & development
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Long Time to Market
(>10 years)
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 10
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The Technology reduces the toxicities of
cancer therapies.
Drug companies have drug candidates that
were discontinued following Phase I Clinical
Testing due to toxicity.
Technology enables the in license of these drug
candidates that could be in the clinic within 4
years.
Beginning clinical trials is a value inflection
point and liquidity point.
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 11
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Compared to Later-stage Investing
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Non-responsive Tech Transfer & Inventors
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Extended Licensing Process
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Non-alignment of Interests:
- University wants RD funding/Overhead / local company,
employment for community, long tail controls on IP,
payment of patent work that often decreases the value of
the technology.
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 12
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Working a somewhat broken science
establishment that encourages nondifferentiated science.
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Sinking budgets / RD funding/ support.
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The University Personality.
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 13
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Educate your researchers before they start their
research.
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Encourage external involvement early in a
project
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Support radical changes in the science
establishment
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Do not rely exclusively on university internal
resources.
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 14
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Structure licenses in ways that can work for
them – have some flexibility
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Make responsiveness a priority
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Build relationships before you need them:
- VC’s on University Advisory Boards
- Offer access to technical expertise
- VIP treatment
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Gerard Eldering
InnovateTech Ventures
(ph) 703-283-7164 – www.innovatetech.com
Bill St. John
The University Funds
(ph) 808-268-9803-www.theufunds.com
Technology Transfer Tactics - www.technologytransfertactics.com - 239-263-0605 17