RAFT is a charity founded 25 years ago by plastic surgeons to develop solutions to clinical problems through biomaterials and stem cells research. Smart Matrix, a product developed through RAFT research, needed to reach patients but RAFT could not fund commercialization. After considering options like finding a buyer or collaborator, RAFT created Smart Matrix Ltd, an independent biotech company, to commercialize the product while maintaining the charity's values of teamwork and innovation. This novel "venture philanthropy" framework allows the charity and company to maximize social impact through their close partnership, with the charity benefiting financially and gaining access to further research opportunities.

1. RAFT & Smart Matrix Ltd
Charity and Commerce working together to make a
difference
Leonor Stjepic
CEO, RAFT
CEO, Smart Matrix Ltd

2. RAFT
• Founded 25 years ago by 4 Consultant Plastic
Surgeons
• Aim - to bring scientists and Plastic Surgeons
together to develop solutions to clinical
problems
• Biomaterials, stem cells, prosthetics

3. RAFT’s Values
1.Team and teamwork
2.Flexibility
3.Professionalism
4.Entrepreneurial approach
5.Innovation

4. Valley of Death
• Smart Matrix™ needed to get to
market
• RAFT, the Charity was not able to take
the commercial route to achieve this
• RAFT was not able to fund the clinical
trial this process

5. The Future for Smart Matrix™
- Mothballs or Patients?

6. Options:
• Scrap the Project - unacceptable
• Find a buyer – too early stage
• Find a collaborator – recession

7. Where next?

8. 1. Could RAFT raise the funds for
commercialisation?
2. Should RAFT be spending
donations commercialisation?
3. Where would it leave the IP?
4. Is this something a charity should
be doing?
5. What was the alternative?
What we needed to ask
ourselves

9. Our Light Bulb Moment!

10. Set up an independent biotech
company...
Smart Matrix Ltd was
born in August 2010
BUT
It took 12 months to
create

11. As well as the typical work required to
set up a company, we also needed:
• Permission from Charity Commission
• Permission from RAFT Trustee Board
• A very complex conflict policy created
• Buy-in of RAFT donors who had funded this
research to the tune of £1.7m
• A unusually robust business plan given RAFT’s
charitable status
Why 12 months?

12. “That’s not the normal way
to do it”

13. • Smart Matrix Ltd set up as commercial
company - venture philanthropy
framework
• Highly engaged partnership between
Raft (Charity) & Smart Matrix Ltd
(Company)
• Maximising investor’s social impact
rather than traditional return on
investment
• Virtual company – only 1 employee

14. • Smart Matrix Ltd – founded on same values as
RAFT
• RAFT CEO also CEO of Smart Matrix Ltd (investor
requirement) but remains a RAFT employee
•RAFT shareholder of Smart Matrix Ltd
• Charity & Company both benefit at the same
time
• Close relationship rather than hands-off licence

15. Differences and Similarities
Differences between RAFT
and Smart Matrix Ltd
Similarities between RAFT
and Smart Matrix Ltd
1. Not for profit v for profit
2. Funded by donations v
funded by investors
1. Values: teamwork,
flexibility,
professionalism,
entrepreneurial
approach, innovation
2. Shared team members
3. Focus on delivery
4. Interest in social impact
5. Equity in Smart Matrix
Ltd

16. Challenges
• Managing academic scientists in a commercial
setting - who are not paid by the company
• IP vs publication of papers
• Managing potential conflicts of interest
• Learning curve for everyone in the charity
• Having a very diverse set of stakeholders to
manage
• Much more public scrutiny due to charity link
• Changing the mindset

17. Benefits - RAFT
• RAFT’s research will get to patients –
RAFT’s charitable mission
• Roll out model with other research
projects to benefit patients
•RAFT benefits financially & can carry out
more research – creating a virtuous circle
• RAFT becomes even more financially
secure
• Professional development of all RAFT
staff is enhanced through relationship
with Smart Matrix Ltd
• Leveraging the company’s contacts

18. Benefits – Smart Matrix Ltd
• Smart Matrix Ltd was set up thanks to a high
level of pro-bono support
• Smart Matrix Ltd has access to further research
being done at RAFT – which could enhance the
product and their investment even further
• Investors enthusiastic about social benefit
• RAFT’s 25 year expertise enhances the
expertise within the company
•Leveraging the charity’s contacts

19. RAFT & Smart Matrix Ltd
Charity and Commerce working together to make a
difference
Leonor Stjepic
CEO, RAFT
CEO, Smart Matrix Ltd