Science entrepreneurship – making it big? Dr Lorraine Warren School of Management, University of Southampton February 3, 2...
Science?
Or…
Geeks are cool, no?
Worse..
Are there any wealthy scientists?
Alchemy?
Maybe! <ul><li>Scientists, engineers and technologists are generally well paid…. compare quite well with medical, legal an...
Examples <ul><li>Dennis Gillings, worth £120m, made fortune in pharmaceuticals   </li></ul><ul><li>Fishmonger's son from E...
THES Survey in 2006 <ul><li>dozens of multi-millionaire professors who have made fortunes through spin-off companies, entr...
Taking science to the market <ul><li>Patents, or licences </li></ul><ul><li>Setting up a ‘spin-out’ company </li></ul><ul>...
Benefits for society too! <ul><li>Goldsmiths technology could save NHS £500 million -- The NHS could save £500 million a y...
My Background <ul><li>School of Management,  http://www.management.soton.ac.uk/people/details.php?Name=LorraineWarren&  or...
Projects <ul><li>www.creatorproject.org , new Business models and research processes for the creative industries [Nottingh...
University of Southampton <ul><li>Research-led ‘Russell Group’ University </li></ul><ul><li>Ranked 12 in UK [out of around...
Southampton Science Park
Collaboration Merck <-> UoS Merck building Has physics and chemistry laboratories on the upper floor and offices on the gr...
The Value Proposition <ul><li>Note: </li></ul><ul><li>A ‘cool technology’ is  not  a good value proposition  </li></ul><ul...
Resources Level of Development Existing Research and  Development Resources Existing Commercialization Resources Discovery...
Resources Level of Development Existing Research Resources (Technical and  Market) Existing Commercialization Resources Di...
Gap between Research and Commercial Application: Targeting resources where they have the greatest impact on new business c...
<ul><li>What do we mean by the ‘value proposition’? </li></ul><ul><li>From a business perspective: </li></ul><ul><li>What ...
<ul><li>From an investment perspective: </li></ul><ul><li>What is the primary factor that makes you sure that the investor...
<ul><li>Possible factors: </li></ul><ul><li>Performance/cost (i.e. based on your core assets) </li></ul><ul><li>Only produ...
Why a team? <ul><li>Entrepreneurs are individuals, no? </li></ul><ul><li>Promising technologies often need significant bus...
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 - Produ...
The TEC Algorithm (Professor Angus Kingon, NCSU) Description  / Ideation Commercialization Strategy Commercialization Impl...
The TEC Algorithm Information  Gathering Description  / Ideation Commercialization Strategy Commercialization Implementati...
Launch Funding Sr Mgmt Strategy Development Primary Information Gathering Preliminary Assessment Product Concept Product F...
Millionaire in the making? <ul><li>Mark Ferguson, Co Founder & CEO Renovo </li></ul><ul><li>2002 European Science Prize, 3...
Renovo <ul><li>Founded in 1998 Renovo commenced operations in October 2000 and floated on the main market of the London St...
The future? <ul><li>Clean technologies??? </li></ul><ul><li>Clean technology venture investment totaled $5.6 billion in 20...
Finally <ul><li>Any questions! </li></ul>
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Basics about Science Entrepreneurship

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Prague lecture

  1. 1. Science entrepreneurship – making it big? Dr Lorraine Warren School of Management, University of Southampton February 3, 2011, English College in Prague
  2. 2. Science?
  3. 3. Or…
  4. 4. Geeks are cool, no?
  5. 5. Worse..
  6. 6. Are there any wealthy scientists?
  7. 7. Alchemy?
  8. 8. Maybe! <ul><li>Scientists, engineers and technologists are generally well paid…. compare quite well with medical, legal and other professions </li></ul><ul><li>But as universities get more entrepreneurial, some scientists have become super-rich… </li></ul>
  9. 9. Examples <ul><li>Dennis Gillings, worth £120m, made fortune in pharmaceuticals </li></ul><ul><li>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 </li></ul><ul><li>Henry Beker, £59m, internet technology </li></ul><ul><li>Chairman of Baltimore Technologies and visiting professor of IT, Royal Holloway, University of London </li></ul><ul><li>Chris Evans, £120m, biotechnology </li></ul><ul><li>Started his career as a microbiologist after studying at Imperial College, London, and Hull University, before taking up a research fellowship in the US </li></ul><ul><li>David Potter and family, £575m, computers </li></ul><ul><li>Former physics professor. Founder of the mobile computer company Psion </li></ul><ul><li>David Rhodes and family, £85m, telecommunications </li></ul><ul><li>Former professor of electronic engineering at Leeds University, founded a group of electronics companies </li></ul><ul><li>[source = Guardian 2001] </li></ul>
  10. 10. THES Survey in 2006 <ul><li>dozens of multi-millionaire professors who have made fortunes through spin-off companies, entrepreneurial ventures and inventions. </li></ul><ul><li>Twelve academics identified as the biggest earners in the list have founded companies worth hundreds of millions of pounds. </li></ul><ul><li>The list is dominated by academics at Oxbridge and Russell Group institutions but also includes lecturers at Bradford, Dundee and Ulster universities. </li></ul><ul><li>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. </li></ul><ul><li>Multimillionaire Cambridge scientist Sir Greg Winter and Oxford chemists Steve Davies and Graham Richards also feature among the top 12 earners. </li></ul><ul><li>Professor Richards, an unabashed multimillionaire, said: &quot;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.&quot; </li></ul><ul><li>Several on the list have made their millions in the past year, such as Stephen Jackson, a Cambridge biologist who founded KuDOS Pharmaceuticals. </li></ul>
  11. 11. Taking science to the market <ul><li>Patents, or licences </li></ul><ul><li>Setting up a ‘spin-out’ company </li></ul><ul><li>Attract funding (Angels/VC) </li></ul><ul><li>Shares, float on AIM </li></ul><ul><li>Incubators, science parks </li></ul><ul><li>Innovation hot-spots: Silicon valley (Stanford University), Boston Route 128 (MIT), Cambridge </li></ul>
  12. 12. Benefits for society too! <ul><li>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. </li></ul>
  13. 13. My Background <ul><li>School of Management, http://www.management.soton.ac.uk/people/details.php?Name=LorraineWarren& or www.doclorraine.com </li></ul><ul><li>Research, teaching, consultancy </li></ul><ul><li>Research interests in digital media; creative industries; development of new products, services, behaviours </li></ul><ul><li>Context: incubation, early stage concept development, policy support, regional development </li></ul>
  14. 14. Projects <ul><li>www.creatorproject.org , new Business models and research processes for the creative industries [Nottingham, Newcastle, Cambridge, Queen Mary, Birkbeck] </li></ul><ul><li>Sensory Threads [Proboscis] biosensors, wearables, community issues </li></ul><ul><li>Gesture and Embodied Action [motion capture-industry links] </li></ul><ul><li>MIPP Sussex University [motion capture-archaeology-visitor experiences] </li></ul><ul><li>LiberateMedia mobile connectivity, new business stratgeies </li></ul><ul><li>Webscience group at Southampton (Tim-Berners Lee) </li></ul><ul><li>ALSO </li></ul><ul><li>International consultancy, sharing best practice USA (MIT, NCSU, San Diego), Russia </li></ul>
  15. 15. University of Southampton <ul><li>Research-led ‘Russell Group’ University </li></ul><ul><li>Ranked 12 in UK [out of around 120], 90 in the world </li></ul><ul><li>South Coast of UK, easy reach of London, Brighton, Bournemouth </li></ul><ul><li>Seeking to develop campus as a Cultural Centre for region </li></ul><ul><li>Southampton Science park </li></ul>
  16. 16. Southampton Science Park
  17. 17. 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.
  18. 18. The Value Proposition <ul><li>Note: </li></ul><ul><li>A ‘cool technology’ is not a good value proposition </li></ul><ul><li>Value proposition must match to market need </li></ul><ul><li>Value proposition must be consistent with strategy </li></ul><ul><li>You must be able to communicate the value proposition succinctly </li></ul>
  19. 19. Resources Level of Development Existing Research and Development Resources Existing Commercialization Resources Discovery TFP Product Development Commercialization The Valley of Death
  20. 20. 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
  21. 21. 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
  22. 22. <ul><li>What do we mean by the ‘value proposition’? </li></ul><ul><li>From a business perspective: </li></ul><ul><li>What is the primary factor that makes you know that your business will make money? </li></ul><ul><li>From a product perspective: </li></ul><ul><li>What makes you sure that your customer needs your product? </li></ul><ul><li>What makes you certain that the customer will buy your product? </li></ul>The Value Proposition
  23. 23. <ul><li>From an investment perspective: </li></ul><ul><li>What is the primary factor that makes you sure that the investor will give you money? </li></ul>The Value Proposition
  24. 24. <ul><li>Possible factors: </li></ul><ul><li>Performance/cost (i.e. based on your core assets) </li></ul><ul><li>Only product offering that is capable of meeting a recognized customer need </li></ul><ul><li>An unbeatable team </li></ul>The Value Proposition
  25. 25. Why a team? <ul><li>Entrepreneurs are individuals, no? </li></ul><ul><li>Promising technologies often need significant business development before line managers or investors are interested </li></ul><ul><li>Often, technical people lack the skills, resources or time to develop product ideas, conduct market research or write business plans </li></ul>
  26. 26. 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
  27. 27. The TEC Algorithm (Professor Angus Kingon, NCSU) Description / Ideation Commercialization Strategy Commercialization Implementation Database or Further Development Phase I Phase II
  28. 28. The TEC Algorithm Information Gathering Description / Ideation Commercialization Strategy Commercialization Implementation Database or Further Development Phase I Phase II
  29. 29. Launch Funding Sr Mgmt Strategy Development Primary Information Gathering Preliminary Assessment Product Concept Product Formulation Preliminary Assessment Primary Information Gathering Strategy Development Implementation
  30. 30. Millionaire in the making? <ul><li>Mark Ferguson, Co Founder & CEO Renovo </li></ul><ul><li>2002 European Science Prize, 350 scientific articles and papers </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>CBE </li></ul>
  31. 31. Renovo <ul><li>Founded in 1998 Renovo commenced operations in October 2000 and floated on the main market of the London Stock Exchange in April 2006 </li></ul><ul><li>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 </li></ul><ul><li>http://www.renovo.com/ </li></ul><ul><li>110 employees </li></ul><ul><li>Dr Sharon O'Kane, CSO, was named as Manchester Business Woman of the Year(Manufacturing/Technology) </li></ul>
  32. 32. The future? <ul><li>Clean technologies??? </li></ul><ul><li>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 ) </li></ul><ul><li>Check out by region and sector! </li></ul>
  33. 33. Finally <ul><li>Any questions! </li></ul>
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