From Lab to Market Accelerating Innovations from Ideas to Commercialization October 22, 2012 Key Take-away Messages Innovate Calgary is much more than UTI was... has significant business and investment expertise, & if we don’t have it, we can access it wants to help you commercialize your ideas Agenda Peter Garrett, Interim President An Introduction to Innovate Calgary Jessie Kubes, Licensing From Ideas to IP David Edmonds, Executive-in-Residence From IP to Company Our Vision & Mission Vision To be the organization of choice for commercialization and knowledge transfer. Mission To accelerate, facilitate and support innovation in the technology sector. Innovate Calgary Track Record (0ver 30 years) Over 1,700 invention disclosures and 690 patents issued Over 590 technology commercialization agreements in over 24 countries generating over $29M for the innovator community Consistently ranked one of the top 5 Canadian Institutions in licensing revenue (AUTM Surveys) Over 40 spin-off companies Supported more than 120 companies prepare to present at financing forums raising over $10.5M in funds Provided over 1,000 tenants and corporate identity clients with services at the Alastair Ross Technology Centre Innovate Calgary’s Ecosystem Role Researchers/ Inventors • Connecting the players • Quantity of interactions • Quality of interactions Innovate Calgary Entrepreneurs/ SME’s Investors Innovate Calgary’s Ecosystem Role Researchers/ Inventors • Providing services to the players Services Innovate Calgary Entrepreneurs/ SME’s Investors Innovate Calgary Services Company Creation Experienced Executives-in-Residence Dedicated business development personnel Access to a variety of services including: legal, communications, business planning and financial modeling Corporate structure planning to meet regulatory and investor requirements, and virtual company capabilities Investor Development Alberta Deal Generator • Largest network of active and accredited investors in Canada pursing opportunities in Alberta’s early and growth-stage companies • To date, more than $15 million in financing has been facilitated through Alberta Deal Generator, in addition to more than $30 million in follow-on investments • Joint initiative with TEC Edmonton Innovate Calgary Services Facilities Alastair Ross Technology Centre: • 120,000-sq-foot facility • Flexible leases and support services • Offers both physical space and virtual tenancy Research Transition Facility (RTF) Partnerships Offers a suite of customized services to accelerate the start-up process and commercialization efforts for new Centres of Excellence and academic institutes Entrepreneur Development Coaching & Mentoring Seminars & Workshops Networking Innovate Calgary Services Licensing Commercial assessment IP protection & strategy Determine pathway for commercialization Marketing technologies Negotiating technology agreements On-going, post agreement management and administration of intellectual property Industry Engagement Provides business-to-business connections between entrepreneurs, SMEs and large enterprise with the goal of assisting in the identification of clients and partners and facilitating partnerships, funding and financing opportunities. Licensing Jessie Kubes, Licensing From Ideas to IP Innovate Calgary Commercialization Process Go – No Go Assignment Agreement Commercialization Assessment Innovate Calgary Invention Disclosure • Encumbrances • IP Strategy • Patentability • Market assessment • Potential licensees Report to inventors Commercialization Opportunity •Requires further work •Pursued by inventor •Abandoned Licensing • Develop technology pitch and market • File patents • Secure additional funding • Sponsored research and license negotiation Company Creation Research Services Revenue Share Arrangement • Leadership • Expertise • Starter cash Technology Assessment Process 30-day technology assessments (free) Evaluate the science and potential benefits of the technology, its stage of development, funding sources and related encumbrances, relevant scientific and patent literature, potential market and licensees Commercialization advice and guidance to researchers Licensing team works with researchers to preserve academic freedom and get technologies into market Develops intellectual property protection and strategy Established relationships with some of North America’s prominent law firms 13 Identify Encumbrances Are there multiple owners? Joint ownership can come from: Funding agreements Sponsored research Material transfer agreements Inventors employed elsewhere Inventor or institution owns policy Have agreements already been made that limit your ability to commercialize? 14 Dealing with Encumbrances Unify ownership All owners assign their rights to the technology (and typically improvements) to a single entity so they have the authority to negotiate agreements Retain joint ownership All owners agree on a party, or process to commercialize so everyone is pulling in the same direction • Who pays costs? • Who leads negotiation? 15 Following Assignment Agreement Establish appropriate valuations and optimal pathways for commercialization Market the technology (full-time marketing assistant) Structure and negotiate transactions with industry partners to maximize value (licensing managers and agreements manager) Provide ongoing, post-agreement management and administration of IP Assist with commercialization grant applications i.e.. CIHR POP grants Commercialization Funds CIHR PoP Phase I and II NSERC Idea to Innovation Phase I and IIa Alberta Ingenuity IRAP Alberta Innovates Voucher Program Alberta Innovates Technology Futures BioAlberta Medical Product Development Program (MPDP) Gecko funding from TecTerra New Proactive Initiatives– AIHS Team Grants Satellite office in the Faculty of Medicine (TRW 5th floor) Manuscript review prior to publication Actively engaged with two institutes New initiative launched between AI-HS and Innovate Calgary to assist researchers in mining technologies developed from interdisciplinary team grants Commercialization support provided by Innovate Calgary Profiling teams to industry IP education for trainees Participation in strategic retreats Reviewing manuscripts and abstracts Presentations Advantages of Working with Innovate Calgary Experienced in all aspects of technology transfer and commercialization Commercialization risk taken on by us E.g. patent and marketing expenses We protect your academic freedom Provide access to development funds Ensures liability protection for inventors and the University Allows you to focus on your research Success Story - Licensing Piers Catalysts New Generation Olefin Metathesis Catalysts • Catalysts for the manipulation of C-C bonds • Can be used in pharmaceutical manufacturing Dr. Warren Piers and Dr. Patricio Romero US Patent issued in April 2008: 7,365,140 Licensed to Materia(www.materia-in.com, Pasadena, CA) Sold via Aldrich (catalogue numbers 707988 & 707961) Success Stories - Licensing Cell Lines for Drug Development Dr. Wayne Chen Cell lines to help identify new drug candidates to treat cardiac conditions Non-exclusive license agreements with Allergan and Bayer-Schering Research tools can be commercialized! Success Stories – Company Creation Circle Cardiovascular Imaging Calgary-based company selling cardiovascular imaging software based on Dr. Matthias Friedrich’s technology Spun out of Innovate Calgary’s company creation program 17 staff, product installed in over 45 sites in 12 countries, raised over $4.3M in financing www.circlecvi.com Life Science Technology Start-Up Parvus Therapeutics Dr Pere Santamaria Innovate Calgary provided $230,000 for proof of concept and IP portfolio development In-kind resources provided: salary (EIR, manager), back office support etc. Leveraged $2.35 million in additional non-dilutive funding AHFMR, CIHR, JDRF, NSERC, NRC-IRAP, NanoBridge, NanoVenture Prize 2012, AITF Issued patents in US, China, NZ. 13 Patents pending in Japan, Aus, Can, Isr and Europe Currently Seeking 1st round VC funding for preclinical development www.parvustherapeutics.com Success Story: Company Creation and Licensing Diagnostic and Therapeutic Devices for Sleep Apnea Dr. John Remmers One of the first scientists to identify sleep apnea Founding father of the Continuous Positive Air Pressure (CPAP) device, which was successfully licensed by Innovate Calgary Licensed exclusively by Innovate Calgary to an international company More recently Zephyr spun out of Innovate Calgary’s company creation program www.zephyrsleep.com Our Licensing Team David Reese, MSc, MBA Jessie Kubes, PhD Robert Carruthers, MEng Raja Singh, MD, PhD Chris Nicholls, PhD Jim Wilson, PhD Rishi Batra, MEng Quang Tran, PhD Andrei Edwards, MBA, JD Angelo Nwigwe, BSc, MBT Company Creation David Edmonds, Executive-in-Residence From IP to Company Company Creation (CC) – What we do We help commercialize very early stage technologies in Southern Alberta through: Identifying talented inventors with novel technologies and large market potential; Injecting management, expertise and “starter capital”; Launching a new company and taking a meaningful ownership stake; Accelerating the opportunity, through value-added services; Attracting outside funding, recruiting Boards and senior executives, and “spinning out” the company. 28 Our Niche: Funding and Services Gap in the Alberta Tech Sector 29 Concept / Early R&D Prototype / Proof of Concept Early or No Revenues Gov’t Grants / “Love” Money Innovate Calgary CC Angels / AVAC / Accelerate Fund Later Stage Revenues VC’s / Public Market Technology Focus Includes Energy Generation & Storage Software 30 Alternative Energy Electronics Micro-Nano Our Team Executives and Entrepreneurs-in-Residence PhD, BEng, BSc, MBAs Founders of 15 start-up companies Raised over $110 million in private and public markets Over 50 years experience as CEOs Managed over 1000 employees Portfolio Managers Engineers, Scientists, and MBAs Focus on opportunity identification and management Analysts Scientists, Engineers, Marketing, Finance, and IP 31 Entrepreneur Backgrounds Stace Wills: VP Company Creation – ex-Elluminate, co-founder Accolade Capital Dave Edmonds: EIR (Oiltech and ICT) – founder of Burntsand, Soft Options and other startups John Lowe: EIR (ICT) – founder of Poynt, The Advisory Group and other startups John Fallavollita: EIR (Cleantech) – founder and ex-CEO of IOSIL Energy Corp. Jeremy Krol: Manager, Company Creation – exJennings Capital David Yiptong: Manager, Company Creation – exNortel Networks Our Advantage Patient capital / earlier-stage focus: We play where most investors won’t accept the risk Sustainable model: Company creation costs partially offset by licensing and building revenues Close ties to southern Alberta academic research community Complementary to, not competitive with, private industry: We expand angel/VC deal pipeline 33 Our Portfolio 10 private companies, mostly based in Calgary Equity and/or debt participation 34 Building Winners Former Company Creation company - recently raised $3M+ in VC financing. More than doubled revenues this past year. Innovate Calgary raised $1.75M in angel/VC financing and grants. 20 new distributors on board. Therapeutic targeting autoimmune diseases including T1D. Raised ~$3 M in grant funding. 35 From the Trenches...Pure Startups Stage 1: IP Assignment Sponsored Research Agreement between U. of Calgary engineering chair and 2 large, private companies “Clean” IP title transfer to NewCo Stage 2: NewCo Launched Incorporation Starter cash provided / grant applications filed Board of Directors and Industry Advisory Board Stage 3: Off to the Races New patents filed From bench to field trails 36 From the Trenches... The “Orphans” New Talent Added: Innovate Calgary “mentor” (EIR) – David Edmonds New Board and management New business plan and financial model Financing Closed: $800,000 from private (angel) investors $900,000 from institutional investor $50,000 from government grants Strengthening IP: Mapping out overall IP Strategy Next Phase…: Currently working with Apple on product integration/distribution 37 Sample of Technologies in our Pipeline… Micro-Nano Electronic technologies in the solar energy space Novel materials and processes for EV battery systems Novel materials for oil well diagnostics 38 Why Innovate Calgary to Create a Company? Money Management Momentum 39 Challenges Innovate Calgary can Assist with Experienced in all aspects of technology transfer and commercialization Commercialization risk taken on by us i.e. patent and marketing expenses Ensures liability protection for inventors and the University Work with University Intellectual Property terms to negotiate on behalf of researchers We protect your academic freedom Allow researchers to focus on their research Questions & Discussion How can U of C inventors and Innovate Calgary partner together to build winning Alberta companies? 41 Connect with Us Innovatecalgary.com 403.284.6400