Prague lecture

Science entrepreneurship – making it big? Dr Lorraine Warren School of Management, University of Southampton February 3, 2011, English College in Prague

Science?

Geeks are cool, no?

Worse..

Are there any wealthy scientists?

Alchemy?

Maybe!
Scientists, engineers and technologists are generally well paid…. compare quite well with medical, legal and other professions
But as universities get more entrepreneurial, some scientists have become super-rich…

Examples
Dennis Gillings, worth £120m, made fortune in pharmaceuticals
Fishmonger's son from East End of London. Became professor of biostatistics, University of North Carolina. Founded Quintiles - research, sales, marketing advice for drug companies
Henry Beker, £59m, internet technology
Chairman of Baltimore Technologies and visiting professor of IT, Royal Holloway, University of London
Chris Evans, £120m, biotechnology
Started his career as a microbiologist after studying at Imperial College, London, and Hull University, before taking up a research fellowship in the US
David Potter and family, £575m, computers
Former physics professor. Founder of the mobile computer company Psion
David Rhodes and family, £85m, telecommunications
Former professor of electronic engineering at Leeds University, founded a group of electronics companies
[source = Guardian 2001]

THES Survey in 2006
dozens of multi-millionaire professors who have made fortunes through spin-off companies, entrepreneurial ventures and inventions.
Twelve academics identified as the biggest earners in the list have founded companies worth hundreds of millions of pounds.
The list is dominated by academics at Oxbridge and Russell Group institutions but also includes lecturers at Bradford, Dundee and Ulster universities.
It includes John King, an ex-lecturer at Queen's University Belfast, who has been valued at £160 million, and Brian Bellhouse, an Oxford engineering professor, whose personal wealth has been estimated at £40 million.
Multimillionaire Cambridge scientist Sir Greg Winter and Oxford chemists Steve Davies and Graham Richards also feature among the top 12 earners.
Professor Richards, an unabashed multimillionaire, said: "Academics are making money on an unprecedented scale. I can think of 20 millionaires in Oxford alone. It is catching. My young colleagues can see that I have made a lot and yet I do normal work and haven't sold my soul. This is also now accepted by academic peers."
Several on the list have made their millions in the past year, such as Stephen Jackson, a Cambridge biologist who founded KuDOS Pharmaceuticals.

Taking science to the market
Patents, or licences
Setting up a ‘spin-out’ company
Attract funding (Angels/VC)
Shares, float on AIM
Incubators, science parks
Innovation hot-spots: Silicon valley (Stanford University), Boston Route 128 (MIT), Cambridge

Benefits for society too!
Goldsmiths technology could save NHS £500 million -- The NHS could save £500 million a year on everyday supplies, thanks to SpendInsight software developed by a partnership featuring academics from Goldsmiths, University of London, the University of Reading and @UK plc.

My Background
School of Management, http://www.management.soton.ac.uk/people/details.php?Name=LorraineWarren& or www.doclorraine.com
Research, teaching, consultancy
Research interests in digital media; creative industries; development of new products, services, behaviours
Context: incubation, early stage concept development, policy support, regional development

Projects
www.creatorproject.org , new Business models and research processes for the creative industries [Nottingham, Newcastle, Cambridge, Queen Mary, Birkbeck]
Sensory Threads [Proboscis] biosensors, wearables, community issues
Gesture and Embodied Action [motion capture-industry links]
MIPP Sussex University [motion capture-archaeology-visitor experiences]
LiberateMedia mobile connectivity, new business stratgeies
Webscience group at Southampton (Tim-Berners Lee)
ALSO
International consultancy, sharing best practice USA (MIT, NCSU, San Diego), Russia

University of Southampton
Research-led ‘Russell Group’ University
Ranked 12 in UK [out of around 120], 90 in the world
South Coast of UK, easy reach of London, Brighton, Bournemouth
Seeking to develop campus as a Cultural Centre for region
Southampton Science park

Southampton Science Park

Collaboration Merck <-> UoS Merck building Has physics and chemistry laboratories on the upper floor and offices on the ground floor for research into liquid crystals.

The Value Proposition
Note:
A ‘cool technology’ is not a good value proposition
Value proposition must match to market need
Value proposition must be consistent with strategy
You must be able to communicate the value proposition succinctly

Resources Level of Development Existing Research and Development Resources Existing Commercialization Resources Discovery TFP Product Development Commercialization The Valley of Death

Resources Level of Development Existing Research Resources (Technical and Market) Existing Commercialization Resources Discovery FFE Development Commercialization Technology Feasibility Point Decision space between opportunity discovery and product development Area of Study

Gap between Research and Commercial Application: Targeting resources where they have the greatest impact on new business creation Resources Research Faculty Service Providers / Complementary Assets Level of Development “ Valley of Death” Existing Research Resources Existing Commercialization Resources Decision space between discovery and product development

What do we mean by the ‘value proposition’?
From a business perspective:
What is the primary factor that makes you know that your business will make money?
From a product perspective:
What makes you sure that your customer needs your product?
What makes you certain that the customer will buy your product?

From an investment perspective:
What is the primary factor that makes you sure that the investor will give you money?

Possible factors:
Performance/cost (i.e. based on your core assets)
Only product offering that is capable of meeting a recognized customer need
An unbeatable team

Why a team?
Entrepreneurs are individuals, no?
Promising technologies often need significant business development before line managers or investors are interested
Often, technical people lack the skills, resources or time to develop product ideas, conduct market research or write business plans

T P P P P P M M M M M M M M M The most basic building block of a Business Concept Why is it difficult?: Technology - Product - Market Linkages

The TEC Algorithm (Professor Angus Kingon, NCSU) Description / Ideation Commercialization Strategy Commercialization Implementation Database or Further Development Phase I Phase II

The TEC Algorithm Information Gathering Description / Ideation Commercialization Strategy Commercialization Implementation Database or Further Development Phase I Phase II

Launch Funding Sr Mgmt Strategy Development Primary Information Gathering Preliminary Assessment Product Concept Product Formulation Preliminary Assessment Primary Information Gathering Strategy Development Implementation

Millionaire in the making?
Mark Ferguson, Co Founder & CEO Renovo
2002 European Science Prize, 350 scientific articles and papers
Professor at the University of Manchester from 1986-2007 where he served as Head of Department, Dean of Biological Sciences and lead a large research group.
was CEO of Manchester Biotec Ltd, a university company formed to foster promising new biotechnology ventures. During this time he was responsible for funding, building and staffing its £15 million Incubator Building and raising a £10 million investment seed fund.
CBE

Renovo
Founded in 1998 Renovo commenced operations in October 2000 and floated on the main market of the London Stock Exchange in April 2006
Renovo is a biopharmaceutical product company and a leader in the discovery and development of drugs to reduce scarring, improve wound healing and enhance tissue regeneration
http://www.renovo.com/
110 employees
Dr Sharon O'Kane, CSO, was named as Manchester Business Woman of the Year(Manufacturing/Technology)

The future?
Clean technologies???
Clean technology venture investment totaled $5.6 billion in 2009 despite non-binding climate change accord in Copenhagen, finds the Cleantech Group and Deloitte ( http://cleantech.com )
Check out by region and sector!

Finally
Any questions!

Prague lecture

by Lorraine Warren on Mar 01, 2011

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