Venture capital funding of public spin offs
This presentation is the property of its rightful owner.
Sponsored Links
1 / 20

Venture Capital funding of public spin-offs PowerPoint PPT Presentation


  • 57 Views
  • Uploaded on
  • Presentation posted in: General

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 [email protected] SITRA, Finnish National Fund for Research and Development.

Download Presentation

Venture Capital funding of public spin-offs

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Venture capital funding of public spin offs

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

[email protected]

SITRA, Finnish National Fund for Research and Development


Venture capital funding of public spin offs

Sitra’s structure: principals and functions

  • Research

  • Training

  • Innovative

    operations

  • Financing of

    technology

    companies

  • International

    funds

  • Regional funds

  • Commercialisation of technologies

Finnish Parliament

Supervisory Board

Board of

Directors

Management


Sitra s operational sectors

Corporate finance

Seed finance and commersialisation of technologies

Investments in venture capital funds

Research and innovative operations

Training

Sitra’s Operational Sectors


Venture capital funding of public spin offs

Sitra's Venture Capital Activities

155 pcs (726 Mmk, ECU 121 million)

SitraVenture Capital

48 (201 Mmk)

102 (375 Mmk)

Direct investments

Inv. in technology transfer

Investments in funds

Tech.transfer

7 (16 Mmk)

Seed and start-up

Growth stage

Strategic investments

Regional funds

60 (148 Mmk)

42 (227 Mmk)

25 (145 Mmk)

16 (40 Mmk)

5 (150 Mmk)

Privatised part of Sitra

Bio Fund Management Oy

Eqvitec Partners Oy

Sitra Fenno Management Oy

(Sitra 31%, managers 69%),0,3 Mmk

(Sitra 30%, man. 70 %),0,5 Mmk

(Sitra 40%, managers 60%),0,8 Mmk

Sitra Bioventures Ky

Eqvitec Tech Fund I Ky

Fenno Program

74,5 Mmk

74 Mmk


Clear tendency from public to private investments as the vc business matures

Clear tendency from public to private investments as the VC business matures

Source: FVCA


Motives for vc investment public investments shift to the early stages

Motives for VC investment; public investments shift to the early stages

Source: FVCA


Sitra focuses on seed start up financing

Sitra focuses on seed & start-up financing

International financing

Domestic venture

capital companies

Tekes

(Sitra)

(3rd round)

Sitra

2nd round

Sitra


Venture capital funding of public spin offs

Breakdown of Sitra's funding in 1998


Business maturity within sitra s portfolio companies in 1998

Business maturity within Sitra’s portfolio companies in 1998

5 companies, EUR 7.8 million

36 companies, EUR 6.9 million

13 %

10 %

27 %

14 companies

EUR 16.1 million

27 %

24 companies

EUR 17.8 million

23 %

TOTAL

102 companies

EUR 63 million

23 companies EUR 14.2 million


Industrial distribution within sitra s portfolio companies in 1998

Biotechnology (11 co.)

Industrial distribution within Sitra’sportfolio companies in 1998

18.8 m

Medical companies (22 companies)

Industrial production (13 co.)

10.4 m

Other electronics (17 co.)

7.5 m

6.0 m

Other manufacturing (2 co.)

5.2 m

Information technology (9 co.)

4.7 m

3.2 m

Chemical industry (7 co.)

Communication (5 co.)

2.7 m

TOTAL

102 companies

EUR 63 million

Consumer goods (5 co.)

1.7 m.

Transportations (3 co.)

1.4 m

Control and monitoring (7 co.)

1.3 m

Travelling (1 co.)

159 000


Management network of the regional funds

Tekno Advisors Oy, Oulu (100%)

Management network of the regional funds

Savon Invest Management Oy Kuopio (100 %)

Indekon Management Oy

Lappeenranta (100%)

Sentio Invest Oy, Tampere (100%)

Aboa Venture Management Oy Turku 25,2%


Network of regional funds

Teknoventure Oy, Oulu

Network of regional funds

Savon Teknia Oy, Kuopio

Karinvest Oy, Joensuu

Pikespo Invest Oy Ltd, Tampere

Midinvest Oy, Jyväskylä

Indekon Oy, Lappeenranta

Spinno-seed Oy, Espoo

Innoventure Oy, Helsinki


Venture capital funding of public spin offs

Network for technology transfer

Oulutech Oy

Oulu

Helsinki UniversityLicensing Ltd. Oy

Helsinki

Tamlink Oy

Tampere

Oy Aboatech Ab

Turku

Finntech FinnishTechnology Ltd Oy

Espoo


Public sector activities for r d in finland

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

Science andTechnologyPolicyCouncil

Other ministries and theirinstitutes

Ministry ofTrade andIndustry

Ministry ofEducation

NationalTechnologyAgencyTekes

  • Funds like:

  • SITRA

  • Kera Oy

Academy ofFinland

TechnicalResearch Centreof Finland

Universities

12/95-06


Universities and technology transfer

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)


Future development

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


Three approaches to the commercial utilisation of innovations

Three approaches to the commercial utilisation of innovations

Growth company

• true entrepreneurship

Innovation

Acquisition vehicle

• exit means

Sale/License of IPRs

• technology brokerage


Venture capital funding of public spin offs

VC criteria - special concerns with spin-off firms

Spin-offs

  • 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


Venture capital funding of public spin offs

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


Venture capital funding of public spin offs

Thank you!

[email protected]


  • Login