2. Session 2 – How Can Help Each
Other?
11:30 Space IDEAS Hub
– Dr Andy Powell
11:45 Intellectual Property
– David Hopkins
12:05 Funding through Business Angels/Venture
Capital
– Jonathan Earl
12:25 Questions
12:35 Company Two‐Minute Pitches
3. Space IDEAS Hub
Dr Andy Powell
Space IDEAS Hub, University of Leicester
4. Space IDEAS Hub: What is it?
Helping business leverage our knowledge and expertise gained
from 50 years of successfully delivering technology into space.
Innovative: Solutions inspired by the challenges of
I working in space
Design: Developing concepts into realistic solutions,
D meeting demanding requirements
Engineering: Full project lifecycle delivery of
E mechanical, electrical, and software systems
Analysis: Expertise in advanced tools for
A mathematical modelling and simulation; state-of-
the-art test equipment to validate your product
Support: Funding advice, proposal writing, free
S consultancy, business events, networking, training …
5. Space Pedigree
Flight Programmes Operational Missions
• Astrosat (Indian Space Research • Swift (NASA)
Organisation) • Chandra (NASA)
• James Webb Space Telescope
(NASA)
• XMM-Newton (ESA)
• BepiColombo (ESA) • Meteosat (EUMETSAT)
• ExoMars(ESA/ROSCOSMOS)
6. Challenges We Overcome
• High sensitivity
• Extreme environment operations
• Light weight
• Compact
• High reliability / longevity
• Low power consumption
7. Technology Spin Out
• Virtual Reconstruction of
Reformation Tombs
• Miniature Gamma-Ray
Camera
• Counterfeit Whiskey
Detection
8. Case Studies
Low Level Earth Observation Medical Aid for Africa
G2Way Ltd Inter Care
• Payload options review • Review of the reduction of
• System operations analysis, active elements in drugs
flight plan assessment using Raman Spectroscopy to
• Low-cost conversion of COTS allow unused drugs to be
sensor to be ready for crop- distributed in Africa
health monitoring
Distributed software Natural Gas Fuel for Cars
Meethub Ltd gasfill Ltd
• Security analysis and design • Investigation of options for
• Web services specification remote monitoring of
and testing compressor operation to
• Prototype deployment ensure efficient operation
methods and functional
reviews
Pressure Relief Beds Drain Clearance
Rober Ltd County Drains (Leicester) Ltd
• Pneumatic design review of • Strength testing of various
current products components
• Optimisation of pneumatic • Component characterisation
control systems testing
9. Why Stratified Medicine?
• Active in the Healthcare Sector
• Showcase University of Leicester expertise
• Bring businesses together to fuel innovation
• Can we help with your business and
technology challenges?
– Initial consultancy FREE for East Midlands SMEs
15. A Registered Trade Mark is...
Any sign which is capable
of being represented graphically
Any sign which is capable of
distinguishing the goods or services
of one undertaking from another
“A Badge of Origin”
16. What can be registered?
Name Logo
Domain name Slogan
Colour theme Shape theme
Non-traditional Music Smell
17. Trade Mark Registration Overseas
Paris Convention - six months priority
OHIM – Community Trade Mark
e-filing fee €900
Madrid Protocol
20. Registered Designs
Protects shape or configuration (3-D)
and/or pattern or ornamentation (2-D)
No protection for function, materials
or technology of manufacture
No protection when form is dictated
by function (ie: no design freedom)
24. Criteria for ‘patentability’
Patents are for “technological innovation”, though the
Patents Act 1977 fails to define the word “invention”
Inventions must be new - not known
anywhere in the world prior to the filing date
Inventions must have an ‘inventive step’ - not
obvious, a simple adaptation or combination
Inventions must be industrially applicable
and have a ‘technical effect’
26. What Copyright protects
Books, technical reports, manuals, databases
Engineering, technical or architectural plans
Paintings, sculptures, photographs
Music, songs, plays, dramatic works
Promotional literature, advertising
Films, videos, cable or radio broadcasts
Computer software
27. Who owns Copyright?
Usually the first creator or author...
…or their employer if produced in the
ordinary course of their employment
However, a contractor will retain ownership
unless their contract is explicit to the contrary
Even if the creator sells their rights, they have
‘moral rights’ over how their work is used
31. Stratified Medicine – Opportunities for
Business
Funding Through Business Angels &
Venture Capital
Jonathan Earl
Investment Director
Catapult Venture Managers Limited
January 2013
www.catapult-vm.co.uk
32. Agenda
• Introduction to Catapult
• A view of the UK funding market
• Venture investing – what is it?
• Venture Capital/Business Angels – when and why?
• What can you expect from an equity investor?
• What is an equity investor looking for?
• What is the assessment process?
• Investment examples
33. Introduction to Catapult
• Venture capital investment house
• Offices in the East and West Midlands
• Invests throughout the UK
• VC funding between £200K and £2M equity requirement
• Manage three Venture Capital Funds
• Total of £80m of funds under management
• Active investor with over 100 investments made in 75
companies
34. A view of the UK funding market
• Business Angels typically provide
£10k to £250k
Main Stock market • Equity gap £250k to £2-4m
• Equity gap funders include seed
LMBO/MBO funds funds, Government leveraged
funds and Venture Capital Trusts
AIM
Specialist • Specialist funds - provide larger
Funds
equity amounts in specific sectors,
Equity Debt includes corporate venturing
Gap
Angels • AIM – for smaller listings; currently
difficult to access
• Leveraged MBO – large deals in
established profitable companies
35. Venture investing – what is it?
• Equity capital for earlier stage, high potential growth companies
• Ultimate goal is to generate a return via a realisation transaction (most
commonly a trade sale, occasionally an IPO or secondary)
• Historically focussed on IP rich companies in specific sectors
• Today tends to have a broader remit
• VC/business angel investing is high risk, high potential reward
• Risk is diversified by holding a portfolio of investments
• Where does venture capital come from?
- High net worth individuals (VCTs, EIS Funds)
- Institutional investors
- Public sector
- Corporates
36. VC/Angels – when and why?
• When: all stages of a business’ lifecycle
- Start up / early stage
- Development capital
- Acquisitions
- Transaction
• Why: “if the bank won’t fund it, it’s an equity risk”
“smaller slice of a larger pie”
37. VC/Angels – when and why?
Business Angels Venture Capital Debt
Quick decision Partner to share risk Relatively cheap
makers
Further funding No equity requirement
Flexible re timing of
Flexible re timing of Cash hungry
returns
returns
Fixed commitments
Relatively expensive
Strengthens balance
Risk averse - security
Advice and support sheet
Personal guarantees
Limited capacity Comfort for banks /
suppliers Lack of availability for
early stage companies
Relatively expensive
NED support
38. What can you expect from an
equity investor?
• Requirement for an equity stake
• Introduction of a Non Executive Director/Chairman
• A comprehensive formal Investment Agreement
• An interested investor (level of involvement varies)
• Monitor and challenge performance
• Ability to provide further funding if required
• Regular review of exit routes
• Help and advice in delivering an exit
39. What is an equity investor
looking for?
• Strong management team (may need augmenting)
• Growth sectors favoured
• Business capable of:
i. sustainable USP/competitive advantage
ii. substantial growth
iii. achieving an exit within 5 years
• Scalable business model
• Good business plan and financial forecasts
• Honest assessment of risks
• Return commensurate with risk
40. Management Team
• Clear leader (buck stops here!)
- Decision maker
- Ability to convey why the investor should invest
• Well rounded team – commercial, technology / R&D, sales & marketing,
operations, finance
• NED to challenge, interface, understand investor requirements
• Proven pedigree
• Committed – time and £
In reality:
• Ideal team unlikely to exist in early stage investing
• VCs are used to multi-tasking teams and to helping to bridge gaps
41. What is a big turn off?
• Lack of commitment from management team
• Unrealistic timescale to market / milestone, leading to...
• Unrealistic funding requirement
• Lack of clarity on strategy / routes to market
• Lack of clarity on investment requirement
- How much, when and what for?
• Dismissing risks
• Long, expensive lead times to revenue / profit / exit
• Turnover as a percentage of market size!
• Poorly defined exit plan
42. What is the assessment process?
• Initial assessment via business plan
• Presentation / elevator pitch to investor
• Initial due diligence
• Terms negotiated Timescale
• Introduction of Non-executive Director 12 plus
weeks for
• Significant further due diligence
VCs
- Management, commercial and financial
• Investment Committee approval
• Legal process
43. Some investment examples
- Oncology biomarker business - Molecular diagnostics platform
- Investment to date of £1.7m - Enables low cost in-field testing
- Part of investor syndicate raising £7.5m - Investment to date of £1m
- Investment to grow via partnering - Investment to develop further applications
- Achieved several high profile deals - 3M food testing deal and strong pipeline
- Molecular diagnostic kits - Clinical trial drug formulation and manufacture
- Genotype/antibodies re organ transplantation - Investment of £0.25m in December 2006
- Investment to date of £0.8m - Investment to complete facility and grow sales
- Investment to expand and commercialise - Sold to Aesica Pharmaceuticals in June 2010
- Recent distribution agreement with pharma - Significant money multiple return
44. Summary
• Equity funding often essential for ambitious growth co’s
• Research the funding market and identify best partners
• Build appropriate team
• Business plan summarising investment case
• Growth potential and exit plan clearly articulated
• Consider obtaining advice from fund raising/investment
readiness specialists
• Long term relationship - mutually beneficial partnership
45. www.spaceideashub.com
enquiries@spaceideashub.com
0116 229 7700
Contact us for a FREE 2‐day
project, problem evaluation and consulting
Space IDEAS Hub
@spaceideashub
