100723 technology transfer business unit


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100723 technology transfer business unit

  1. 1. Skolkovo Foundation business model Ilya Ponomarev discussion materials
  2. 2. Main principles <ul><li>Each component of the project should be a separate business unit with a separate P&L </li></ul><ul><ul><li>Each business unit should make money </li></ul></ul><ul><ul><ul><li>Some might have limited and carefully planned donations </li></ul></ul></ul><ul><ul><li>Each service should be implemented on a competitive basis </li></ul></ul><ul><ul><li>Skolkovo business plan equals to summary of individual business units business plans </li></ul></ul><ul><li>Business model should assume separation of public and private funding </li></ul><ul><ul><li>After a certain period of time Skolkovo Foundation should not be dependent on government funding </li></ul></ul>
  3. 3. Funding sources <ul><li>Federal budget </li></ul><ul><ul><li>Funds primarily physical infrastructure and capital expenses </li></ul></ul><ul><li>Private developers </li></ul><ul><ul><li>Invest into real estate to be build within Skolkovo </li></ul></ul><ul><li>Corporations </li></ul><ul><ul><li>Sponsorship agreements (labs, particular research, university endowment, etc.) </li></ul></ul><ul><ul><li>PE and VC investments, both as GPs and LPs </li></ul></ul><ul><li>R&D grants (corporate and government) and contracted R&D </li></ul><ul><li>Investment funds </li></ul>
  4. 4. Chinese wall between different type businesses SKOLKOVO Development Investment opportunities Services Three different type of businesses assume three different type of investors/partners
  5. 5. Components of Skolkovo environment <ul><li>Office premises </li></ul><ul><li>Production facilities </li></ul><ul><li>Residential space </li></ul><ul><ul><li>Permanent ( ? ) </li></ul></ul><ul><ul><li>Temporary apartments </li></ul></ul><ul><li>Shared facilities and services </li></ul><ul><ul><li>Testing and prototyping labs </li></ul></ul><ul><ul><li>Financial services (both equity and debt financing) </li></ul></ul><ul><ul><li>Projects incubation </li></ul></ul><ul><ul><li>Customs support </li></ul></ul><ul><ul><li>IP protection </li></ul></ul><ul><ul><li>Physical security </li></ul></ul><ul><li>University </li></ul><ul><li>Social infrastructure </li></ul><ul><ul><li>Cafes and restaurants </li></ul></ul><ul><ul><li>Medical care </li></ul></ul><ul><ul><li>Schools and kindergardens </li></ul></ul><ul><ul><li>Shopping malls and entertaintment </li></ul></ul><ul><ul><li>Hotels </li></ul></ul>
  6. 6. Typical business unit Skolkovo Foundation Functional Coordinator Endowment (non-profit fund ) 100% ownership Управляющие компании – поставщики услуг Skolkovo customers Управляющие компании – поставщики услуг Managing companies – service providers % from upside
  7. 7. Major businesses within Skolkovo Skolkovo Foundation Education Tech. Dev. Business Dev. Tech. Transfer Investments Real Estate Tech. brokers IP lawyers Training and consulting Market research 5 technological priorities Shared labs R&D centers University Incubators PE/VC funds Construction Management Services Financial control Administration PR Corp. customers Start-up customers ( benefits mgmt ) Social infra- structure mgmt GR Intl. Skolkovo rep. offices Finance Office management Outsourced govt. functions: customs, tax, city mgmt, … Security Legal IR Skolkovo Capital
  8. 8. Working with residents <ul><li>4 different types of residents with 4 separate sets of benefits and 4 different sets of policies: </li></ul><ul><ul><li>International hi-tech corporations </li></ul></ul><ul><ul><li>R&D centers of Russian and intl. non-hi-tech corporations </li></ul></ul><ul><ul><li>Russian hi-tech corporations </li></ul></ul><ul><ul><li>Start-ups </li></ul></ul><ul><li>Skolkovo partners: </li></ul><ul><ul><li>Investment funds </li></ul></ul><ul><ul><li>Banks: commercial and investment </li></ul></ul><ul><ul><li>Marketing and business development </li></ul></ul><ul><ul><li>Consulting </li></ul></ul><ul><ul><li>Legal: patent and corporate lawyers </li></ul></ul>
  9. 9. Business Unit “Education” <ul><li>Objective: to create and manage a new university in Skolkovo, established to promote culture of entrepreneurship and innovation and to supply potential employees to Skolkovo residents: </li></ul><ul><ul><li>University may or may not include undergraduate education </li></ul></ul><ul><ul><li>University is to be created on the base of partnership between leading foreign (MIT) and leading Russian (Bauman?) educational institutes </li></ul></ul>
  10. 10. University business model <ul><li>Initial capital: </li></ul><ul><ul><li>Skolkovo Foundation invests in the infrastructure (campus, equipment), and establishes endowment with capital, sufficient to cover operating expenses during initial years </li></ul></ul><ul><li>Revenues: </li></ul><ul><ul><li>Research grants (supervised by Ministry of Science and Education) </li></ul></ul><ul><ul><li>Educational activities (according to the existing Russian legislation) </li></ul></ul><ul><ul><li>Endowment revenues </li></ul></ul><ul><ul><li>Sponsors contributions </li></ul></ul>
  11. 11. Business Unit “Technological Development” <ul><li>Objectives: </li></ul><ul><ul><li>Establishment of a network of national research labs together with leading Russian and international institutes and universities </li></ul></ul><ul><ul><li>Coordination of research activities to maximize their commercial potential </li></ul></ul><ul><ul><li>Management of shared labs for Skolkovo residents </li></ul></ul><ul><li>Supervised teams: </li></ul><ul><ul><li>5 chief technologists according to 5 technological priorities </li></ul></ul><ul><ul><li>Shared labs as an independent companies, created under requests of Skolkovo residents </li></ul></ul><ul><ul><li>National labs </li></ul></ul><ul><li>Unit operates in close collaboration with the Scientific Council chaired by Alferov and Kornberg </li></ul>
  12. 12. Business model of national and shared labs <ul><li>Initial capital: </li></ul><ul><ul><li>Skolkovo Foundation invests into equipment and lab space </li></ul></ul><ul><ul><li>For national labs – endowment is being established by research sponsors; for shared labs – a managing company is being contracted </li></ul></ul><ul><li>Revenues: </li></ul><ul><ul><li>Research grants (mainly through Ministry of Science and Education and Russian Fund for Basic Research) </li></ul></ul><ul><ul><li>Contracted research, for shared labs – leased time </li></ul></ul><ul><ul><li>Endowment revenues and sponsorships </li></ul></ul>
  13. 13. Business Unit “Business Development, Commercialization and Technology Transfer” <ul><li>Objectives: </li></ul><ul><ul><li>Scouting for technologies with a strong business potential inside Russia and in other countries </li></ul></ul><ul><ul><li>Training and consulting entrepreneurs in transforming technological advances into business lines </li></ul></ul><ul><ul><li>Assisting in incorporating businesses </li></ul></ul><ul><ul><li>Introducing companies to potential customers and potential investors </li></ul></ul><ul><ul><li>IP management </li></ul></ul><ul><li>Supervised teams: </li></ul><ul><ul><li>Technology brokers </li></ul></ul><ul><ul><li>IP lawyers </li></ul></ul><ul><ul><li>Consultants </li></ul></ul><ul><ul><li>Training groups </li></ul></ul><ul><ul><li>Skolkovo representation offices inside Russia (hi-tech parks, special economic zones) </li></ul></ul><ul><ul><li>Skolkovo representation offices outside Russia </li></ul></ul><ul><ul><li>Market research groups </li></ul></ul><ul><li>Unit uses expert panel to interact with corporations, investors, universities, etc. </li></ul>
  14. 14. Technology broker business model <ul><li>Technology broker – is a private company with offices both in Russia and abroad, working to create of new companies and/or patents, to bring them to international markets, and to facilitate entry of international hi-tech companies to Russia </li></ul><ul><ul><li>Technology brokers receiving a time-limited mandate to represent Skolkovo Foundation on a certain territory and/or for a certain industries </li></ul></ul><ul><li>Skolkovo Foundation compensate operating costs of commissioned brokers at a minimal level, excluding possibilities for them to make profit from such compensation </li></ul><ul><li>Each company, created with the participation of tech. broker, gives agreed part of its equity to the specially created endowment/fund, established by Skolkovo Foundation </li></ul><ul><ul><li>No entry into pre-existing companies is assumed </li></ul></ul><ul><ul><li>Broker is not investing live money into companies, but pays for numerous services, required to bring technologies to the market </li></ul></ul><ul><li>Technology broker receives 20% of upside, generated for the endowment upon liquidity event (M&A or IPO) </li></ul>
  15. 15. Business Unit “Investments and Financial Services” <ul><li>Objective – provide full scale of financial services for start-ups and spin-offs, from pre-seed stage to IPO support </li></ul><ul><li>Supervised elements: </li></ul><ul><ul><li>Variety of business incubators </li></ul></ul><ul><ul><li>Network of PE and VC funds </li></ul></ul><ul><ul><li>Skolkovo Capital investment fund </li></ul></ul><ul><li>Coordinates with other national development bodies (Rusnano, RVC, Vnesheconombank) </li></ul>
  16. 16. Business incubators <ul><li>Different business models should be supported </li></ul><ul><ul><li>With or without equity participation </li></ul></ul><ul><ul><li>With or without investments and/or grants </li></ul></ul><ul><ul><li>With individual or shared office space </li></ul></ul><ul><li>Skolkovo Foundation provides office space for incubators at a special price </li></ul><ul><ul><li>Limited time for partner incubators to reach agreed objectives </li></ul></ul><ul><li>Incubator management company raises money to pay for its operating costs </li></ul>
  17. 17. Working with investment funds <ul><li>Skolkovo Capital investment fund </li></ul><ul><ul><li>Financially and organizationally independent business unit </li></ul></ul><ul><ul><li>Skolkovo Foundation – limited partner ( ?) </li></ul></ul><ul><ul><li>Primarily serves projects introduced by Presidential Commission for Modernizing the Economy </li></ul></ul><ul><li>Third-party funds </li></ul><ul><ul><li>Free (or special-terms) office with residential space </li></ul></ul><ul><ul><li>Right of first refusal for projects generated by “business development” unit in return for participation in mentoring and providing expertise </li></ul></ul>
  18. 18. Business unit “Real Estate” <ul><li>Urban planning department is to determine the development concept, main construction areas, particular premises, and set of services provided for Skolkovo residents </li></ul><ul><li>Skolkovo Foundation is to invest into engineering infrastructure, buys electricity, water, sewage and other utilities, eliminates development risks, and constructs premises, unattractive for private investors </li></ul><ul><li>Premises that are normally attractive for investors, like office, residential, hotels, entertainment, shopping space, etc., are constructed by private investors </li></ul><ul><li>Facilities management and services are provided by private suppliers, selected on a competitive market </li></ul>
  19. 19. Real estate policies for Skolkovo residents <ul><li>4 different development areas for 4 different type of resident companies (see above) </li></ul><ul><li>Rental price at market level / slightly above market </li></ul><ul><ul><li>Skolkovo residents can apply for partial reimbursement of rental/services costs according to policy to be developed </li></ul></ul><ul><li>Apartment sale for residents’ employees: </li></ul><ul><ul><li>Rental within Skolkovo core objects </li></ul></ul><ul><ul><li>Possibility to buy ONLY through a special mortgage program at adjoining territories, developed by private constructors: </li></ul></ul><ul><ul><ul><li>Residents’ employees are getting very low interest rate while being employed (loans provided by partner banks) </li></ul></ul></ul><ul><ul><ul><li>Non-employees are getting significantly-higher-than-market interest rate </li></ul></ul></ul>
  20. 20. Business Unit « Business Development, Commercialization and Tech Transfer » Initial operations plan
  21. 21. Objectives <ul><li>To create under Skolkovo umbrella scalable commercialization and technology transfer mechanisms and nation-wide pipeline of projects with high export potential, attractive for investments </li></ul><ul><li>To bring leading technologies from abroad and to support organization of hi-tech manufacturing facilities in Russia, using Skolkovo as an entry point </li></ul>
  22. 22. Positioning among other Skolkovo business units Education Tech. Dev. Incubation Business Dev. Investments Real Estate PR & marketing
  23. 23. Lines of operation <ul><li>Creation of new companies, based on Russian technologies: </li></ul><ul><ul><li>Search for potentially marketable technologies in Russia and creation of “technologies funnel” </li></ul></ul><ul><ul><ul><li>Exhibitions, project competitions, conferences and seminars </li></ul></ul></ul><ul><ul><ul><li>Work with universities, research institutes, cooperation with Rusnano, RVC, Bortnik Fund, etc. </li></ul></ul></ul><ul><ul><ul><li>Working with entrepreneurs directly </li></ul></ul></ul><ul><ul><li>Development of a business model and product lines together with selected project teams </li></ul></ul><ul><ul><li>Organizing adequate IP protection </li></ul></ul><ul><ul><li>Preparing investment memorandums and teasers for investors in Russia, sales kits for potential customers </li></ul></ul><ul><ul><li>Presentation of prepared projects to the investors and potential customers </li></ul></ul><ul><li>Entry of Russian companies (both existing and newly formed) to the international markets </li></ul><ul><ul><li>Development of entry strategy </li></ul></ul><ul><ul><li>Development of product lines for particular market </li></ul></ul><ul><ul><li>Staffing with local personnel and training of Russian managers to work on particular market </li></ul></ul><ul><ul><li>Partnerships development (first customers, investors, research groups) </li></ul></ul><ul><ul><li>Formation of consortiums for participation in local tenders (government and large corporations), assisting in certification </li></ul></ul><ul><ul><li>Participation in exhibitions and trade shows </li></ul></ul><ul><li>Licensing of Russian IP to international corporations </li></ul><ul><li>Scouting for potential acquisition/investment targets overseas, which can be invested and benefit from cooperation with Russian investors </li></ul><ul><li>Scouting for overseas hi-tech companies, which might be interested in transferring their manufacturing and/or R&D to Russia </li></ul><ul><ul><li>Identifying targets </li></ul></ul><ul><ul><li>Developing Russia entry strategy and building necessary partnerships (industries, research, finance) </li></ul></ul><ul><ul><li>Eliminating bulk of government-associated risks (negotiating permits and licenses, land allocations, organizing corporate GR, etc.) </li></ul></ul><ul><ul><li>Staffing and training </li></ul></ul>
  24. 24. Key performance indicators <ul><li>Number of companies registered with Skolkovo Foundation </li></ul><ul><li>Number of patents registered by companies, registered with Skolkovo Foundation, or by patent attorneys, registered with Skolkovo Foundation, and number of companies and/or patents, brought from outside to Russia </li></ul><ul><li>Total value of companies, registered with Skolkovo Foundation </li></ul><ul><li>Number of working places created in Russia </li></ul><ul><li>Amount of taxes paid in Russia </li></ul><ul><li>Number of representation offices worldwide and in Russia </li></ul><ul><li>Number of companies/technologies in the pipeline </li></ul>
  25. 25. Business model <ul><li>Skolkovo Foundation creates subsidiary non-profit endowment, and places some funds into it </li></ul><ul><li>Endowment negotiates on competitive basis with private companies (technology brokers) to manage part of its funds during agreed period of time (usually 8 years) </li></ul><ul><li>Selected companies are mandated to represent Skolkovo Foundation to facilitate business development in a certain region (for example – US East Coast ) and/or industry (for example – pharma ) </li></ul><ul><li>Selected companies are entitled for quarterly management fees </li></ul><ul><li>Endowment receive equity (or royalty share) in companies, that are created with its assistance (usually 10-25%) </li></ul><ul><li>In case of exit ( M&A or IPO) , and other profits (dividends, sales commissions, royalties, etc.) generated by created companies, endowment pays responsible technology broker success fee, usually 20% of upside </li></ul>
  26. 26. Staffing <ul><li>Skolkovo Foundation management - 4 pers . </li></ul><ul><ul><ul><li>Vice-President – Endowment Chairman </li></ul></ul></ul><ul><ul><ul><li>Assistant VP </li></ul></ul></ul><ul><ul><ul><li>2 secretaries </li></ul></ul></ul><ul><li>Typical technology broker: </li></ul><ul><ul><li>Skolkovo office – 6 pers . </li></ul></ul><ul><ul><ul><li>Director of operations, Russia – Pipeline manager </li></ul></ul></ul><ul><ul><ul><li>Marketing manager </li></ul></ul></ul><ul><ul><ul><li>Events manager </li></ul></ul></ul><ul><ul><ul><li>Analyst/consultant </li></ul></ul></ul><ul><ul><ul><li>Patent attorney </li></ul></ul></ul><ul><ul><ul><li>Secretary </li></ul></ul></ul><ul><ul><li>Intl. office – 8 pers. </li></ul></ul><ul><ul><ul><li>Managing partner – funds </li></ul></ul></ul><ul><ul><ul><li>Managing partner – corporations </li></ul></ul></ul><ul><ul><ul><li>Managing partner – GR and business associations </li></ul></ul></ul><ul><ul><ul><li>CFO </li></ul></ul></ul><ul><ul><ul><li>Marketing/events manager </li></ul></ul></ul><ul><ul><ul><li>Sales representative(s) </li></ul></ul></ul><ul><ul><ul><li>Lawyer </li></ul></ul></ul><ul><ul><ul><li>Secretary </li></ul></ul></ul>
  27. 27. Action plan <ul><li>2010 </li></ul><ul><li>August preparation of contracts with first two brokers </li></ul><ul><li>August preparation of contract with SVTC and VEB-Capital to establish microelectronics operations </li></ul><ul><li>September opening office </li></ul><ul><li>September-October endowment registration </li></ul><ul><li>September signing first brokers contracts </li></ul><ul><li>September presentation of innovations roadmap on Yaroslavl Forum </li></ul><ul><li>September nation-wide conference of hi-tech parks and special economic zones (in Novosibirsk), establishing regional partnerships, opening Siberian representation office </li></ul><ul><li>September presentation of Skolkovo in Shanghai World Expo “Russian Day” </li></ul><ul><li>September presentation of Skolkovo in S.-Petersburg “Innovation Week” </li></ul><ul><li>October VCs visit to Russia (jointly with Rusnano and RVC) </li></ul><ul><li>October opening Skolkovo office in Boston </li></ul><ul><li>October visit of Russian regional authorities to US, commercialization/tech. transfer training seminar </li></ul><ul><li>October-November preparation of an intl. road show (London, Boston, …) </li></ul><ul><li>November opening Skolkovo office in Silicon Valley </li></ul><ul><li>November opening Skolkovo office in Europe (Lausanne? London?) </li></ul><ul><li>November presentation of Skolkovo on Moscow “Innovation Week” </li></ul><ul><li>November opening Urals representation office (Perm?) </li></ul><ul><li>December road-show </li></ul><ul><li>December training seminar for Russian entrepreneurs in US </li></ul><ul><li>2011 </li></ul><ul><li>2 additional technology brokers , 2 new overseas offices , 2 new Russian regional offices </li></ul><ul><li>5 trade shows/exhibitions worldwide </li></ul><ul><li>2 trips of potential international partners to Russia </li></ul><ul><li>4 seminars for entrepreneurs outside Russia , 2 seminars for regional officials outside Russia </li></ul><ul><li>6 seminars for entrepreneurs inside Russia </li></ul>
  28. 28. Skolkovo Foundation costs vs action plan TOTAL Travel and communications Disposables Salaries Skolkovo Foundation personnel (before tax) Participation in 5 major international trade shows according to technological priorities and in 10 additional conferences Participation in 5 major intl. trade shows according to technological priorities and in 5 additional conferences , 2 trips of potential partners to Russia Participation in 5 major international trade shows according to technological priorities , 2 trips of potential partners to Russia Skolkovo presentation in 2 locations , 1 trip of potential partners to Russia Companies marketing, working with potential customers, trade shows and events 8 projects in work 6 projects in work 4 projects in work Transfer of foreign projects into Russia 8 seminars for entrepreneurs outside Russia , 10 seminars inside Russia 6 seminars for entrepreneurs outside Russia , 8 seminars inside Russia 4 seminars for entrepreneurs outside Russia , 2 seminars for regional officials outside Russia , 6 seminars inside Russia 1 seminar for entrepreneurs outside Russia , 1 seminar for regional officials outside Russia , 2 seminars inside Russia Training and consulting 8 patent attorneys , 70 patents 6 patent attorneys , 40 patents 4 patent attorneys , 10 patents 1 patent attorney IP support 80 projects in pipeline , 10 successes , 7 regional offices 50 projects in pipeline , 5 successes , 7 regional offices : Moscow, Novosibirsk, Tomsk, S.-Petersburg, Perm, Kazan, Tyumen 25 projects in pipeline , 5 regions : Moscow, Novosibirsk, Tomsk, S.-Petersburg, Perm 8 projects in pipeline , 3 regional offices: Moscow, Urals, Siberia Projects’ scouting in Russia Boston, Silicon Valley, 2xEurope, 2xAsia Boston, Silicon Valley, 2xEurope, 2xAsia Boston, Silicon Valley, 2xEurope, Asia Boston, Silicon Valley, Europe Skolkovo representation offices 5 brokers, 6 offices 4 brokers, 5 offices 2 brokers, 3 offices Establishing network of technology brokers 2013 2012 2011 2010 2013 2012 2011 2010 Deliverables Skolkovo Foundation exposure ( thousands rubles ) Operations line