Ms. Marsha Wulff, Founder and Principal, Wulff Capital

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Collaborative
Commercialization©
A Diaspora-based Model for
Sustainable Economic Development
By Marsha Wulff
[email protected]
October 2006
Traditional
Product Commercialization
Product Developed
& Refined in G7
Donated &/or Sold to
Emerging Market (EM)
 Major co from a G7 country develops intellectual
property associated with Products
 G7 co either synthesizes materials for products or
sources raw materials from EM
 G7 co captures value adds from manufacturing
through product commercialization
 Some finished product is donated/sold to EM, but
funding is always an issue
Traditional Commercialization
Value Addition
Value Addition
G7
EM
Discovery, Recognition
x
Intellectual Property Rights
x
Regulatory Licenses
x
Product
Development/Refinement
x
Market Research & Planning
x
Manufacturing/Processing
x
x
Global Sales & Distribution
x
x
Multi-national Operations
x
x
Corporate Ownership
x
Traditional Commercialization
Systemic Problems
 EM does not develop economic strength to
buy health products
 EM health needs are not met because EM
cannot pay for G7 health products
 Neglected diseases prevent EM economic
development
 Cycle of poverty continues, as do social,
political & economic unrest
New Global Dynamics / EM
 EM Diaspora have earned degrees from top G7
universities
 EM Diaspora have attained career distinction in
leadership roles at major firms
 EM Diaspora are establishing new firms in their
old homelands
 Case Study of Silicon Valley: The New Argonauts:
Regional Advantage in a Global Economy, by
Saxenian
Communication Technology Advancements
permit efficient global interaction
New Global Dynamics / G7
 Major corporations now recognize their
growth depends upon acquiring rights to
innovations from smaller, more
entrepreneurial firms.
 Major corporations now accept a ‘Flat World,’
and rely on collaborations with
entrepreneurial firms in China & India to
remain competitive.
 These collaborations are usually orchestrated
by EM Diaspora.
 Major firms recognize EM citizens as potential
customers, Bottom of the Pyramid.
Collaborative Commercialization
Product Development
EM Co
Discovers & Develops
Product
Diaspora
Assistance
EM Co Collaborates w/
G7 Co for
Global Commercialization
1. Entrepreneurial EM Co:



Establishes branded product,
Proves up market demand, and
Secures government incentives for new jobs.
2. EM Co collaborates with Major G7 firm to:




Refine product for global markets;
Market co-branded product;
Ramp up manufacturing; and
Distribute globally
Collaborative Commercialization
Value Addition
Value Addition
G7
EM
Discovery, Prospect Identification
x
Intellectual Property Rights,
x
Regulatory Licenses
x
x
Product Development/Refinement
x
x
Market Research & Planning
x
x
Manufacturing/Processing
x
x
Global Sales & Distribution
x
x
Multi-national Operations
x
x
Corporate Ownership
x
x
Collaborative Commercialization
Resolves Systemic Problems
 EM develop economic strength to buy own health
products
 Health needs of EM are addressed because they
can make and pay for appropriate health products
 EM SMEs gain access to larger corp growth
resources
 Improved health promotes EM economic
development
 Cycle of poverty is broken through self sufficiency
 Empowerment leads to social, political & economic
stability
The EM Opportunity …
Current EM Innovation Pipeline:
Diaspora
Assistance
University Innovation Centers
Public Research Centers
Business Incubation Centers
Private Enterprise
Intellectual Property Attorneys
Seed Stage Venture Funds
Licensing Agents
Development Funds
Development Agencies
NGOs & Civic Organizations
Professional Associations
The Problem:
Product Commercialization Funding
Product Development
Stage
Research
Time
Trials
Commercialization
Expansion
M&A
IPO
Funding Sources
•Universities
•R&D Centers
•NGOs
•Founder, Friends
& Family
Funding
Constriction Point
•VC
•Corporate
Contracts
•Private Equity
•Banks
•Public Markets
The Answer:
Diaspora Bridge Gap to Venture Capital
Diaspora
Assistance
Venture Capital backed successful,
Diaspora-led Product Commercializations
Case Studies: Financial Systems,
Corporate Investment in Innovation and
Venture Capital by Bartzokas and Mani,
2004
Ex: India ITC companies
The Need:
A Hub that Sustainably Links
Commercialization Resources
Industry
Leaders
Development
Agencies
Product
EM
Innovation
Systems
Commercialization
Entity
Global
Health
NGOs
Diaspora
Assistance
Venture
Capital
Funds
The Sustainable Solution
Product Commercialization Portfolios
G7 Investor &
Industry
Resources
Collaborative
Commercialization
Entity
Innovation Centers
Foundations
Venture Funds
Merchant Banks
Investment Banks
Diaspora-Led
Product
Commercialization
Portfolio Program
Multilateral Agencies
Industry Associations
Social Investor Groups
Development Agencies
EM Innovation &
Enterprise
Resources
Research Centers
Incubation Centers
Intellectual Property
Attorneys
Seed Funds
In-Licensing
Out-Licensing
Manufacturing
Sales/Distribution
Development Partnering
Development Funds
Development Agencies
NGOs & Civic
Organizations
Collaborative Commercialization Entity;
The Bridge to Private Sector Expertise…
Administers Product Commercialization Program
Business Administration: Fiscal oversight, Metrics, Reports,
Communications, Compensation
Funding Sources:
Initially NGOs & Govt Loan/Grant Funding
Then Profit Sharing Revenues
Incents Private Sector with Risk Reduction strategies:
Supplements Product Development Costs
Provides Experts to Launch & Market Products
Negotiates Corporate Revenue Sharing Contracts
Deploys Private Sector Expertise:
Interfaces with Diaspora, Industry and Funding Networks
Funds cross-functional Team of Experts to assist Portfolio Cos
Conducts EM SME Management Training Boot Camps
Product Commercialization Portfolio (PCP)
Program Structure
NFP &/or Govt Funder
Grants Initial Funding
Holds PCP Accountable for Metrics
Brand Lends Credibility & Visibility
Product Commercialization NFP Corp
Administers Funding, becomes Self-supporting entity
Hires & Manages Commerce Experts
Consumates Commerce Agreements
Diaspora
Global PCP Executive Director(s)
Global Product Portfolio Balancing
Investment Structure & Syndication
G7 Investor & Industry Agrmnts
PCP Support Teams
Market Research, Intellectual Prop.
Design Engrg, Sales & Marketing
Corp Law
Regional PCP Manager(s)
Identify & Screen Innovations
Support SME Mangement
Regional Investor & Industry Relations
Administrative Assistant
PC Executive Board
Broad Spectrum of Sr Intl Experts
Network with Multi-lateral Funders,
Industry Partners & Private Investors
Financial Analyst
PCP Diaspora Team
Connects Regional Entrep with Diaspora
Ethnic Professionals Relations
Conducts Networking Events
Diaspora
Diaspora
PCP BootCamps
Mngmt Trng: Biz Dev, Prod Dev,
Fair Trade
Investor Relations, Corp Law, CSR
How to get Started
Public Sector & NGOs…
These
Development
Sponsors:
•Foundations
•Multilateral Agencies
•Development
Agencies
Provide Initial
Grants & Loans to
Establish
Collaborative
Commercialization
Entity
In-Licensing
Out-Licensing
Manufacturing
Sales/Distribution
Development Partnering
Diaspora
Assistance
To Establish & Manage
Product
Commercialization
Portfolio Program
How to get Started
Diaspora
Assistance
Private Sector…
Collaborative
Commercialization
Entity Taps these
Private Sector
Resources:
•Ethnic Professional
Associations (TIE)
•Venture Capital
Industry
•Socially Responsible
Corps
•Industry Biz Dev Depts
For Experts in:
•Intellectual Property Rights
•Corp Contract Negotiations
•Product Design Refinement
•Market Research
•Industry Networking
•Product Launch
•Business management
•Market Access
In-Licensing
Out-Licensing
Manufacturing
Sales/Distribution
Development Partnering
To Commercialize
Indigenous
Products:
•Manufacturing
•Major Sales Contracts
•Global Distribution
•Additional Product Line
Extensions
•Sales Revenues
BRI
Commercialization Example
BioResources International, Inc.
 Diaspora Management Team,
Americans from Ghana, Ivyleague advanced degrees in
Science & Business
 Co adds value to plant-based
health products grown in Africa
 Developing low-cost pediatric
anti-Malarial drug
 Needs $5M loan for an extraction
facility & product launch
Collaborative Commercialization,
The Diaspora-based Solution…
Indigenous Innovations
+
Development Funding
+
Commercialization Resources
=
Sustainable Economic Development
[email protected]
www.wulffcapital.com
214-632-7813
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