The document discusses European Investment Fund's support of technology transfer and intellectual property. EIF has invested €5.4 billion in venture and growth capital across Europe. It has experience investing in technology transfer from research organizations to commercial products through spin-outs, licensing, and collaborations. EIF provides examples of its technology transfer transactions and lessons learned over 5 years of experience. It also discusses knowledge transfer partnerships and the growing importance of fund-of-funds management to support technology commercialization.

1. Graham Cope European Investment
European Investment Fund Fund
EIF support of Tech Transfer and Intellectual Property
And how we want to do more
This presentation was prepared by EIF. Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct.

2. €5.4bn Net Equity Commitments
Venture & Growth Capital Portfolio
across Europe at 31.12.2010
EUR m
Lithuania 40
Austria 54 Luxembourg 21
Belgium 82 Malta 8
Bulgaria 13 Netherlands 109
Cyprus 7 Norway 25
Czech Republic 28 Poland 92
Denmark 95 Portugal 155
Estonia 7 Romania 36
Finland 115 Slovakia 4
France 768 Spain 423
Germany 558 Sweden 280
Greece 15 Switzerland 81
Hungary 16 Turkey 274
Ireland 89 United Kingdom 1306
Italy 267 Other & Non EU 396
Latvia 36
Nordic
Region
(total):
EUR 515m
EU 27
EU Candidate Countries
1 EFTA/EEA

3. Technology Transfer - Converting Research
into Products for the Market
R&D Technology Transfer Marketable Product
“technology IP” “prototype IP”
University / Market
Research Spin-out
Organisation
Licensing
IP / Idea
Collaboration
(contract research,…)
Technology Transfer is the process which uses these 3
channels to convert scientific findings from research
organisations into commercial products
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4. ElF's Tech Transfer Experience
 Since 2005, EIF has been able to invest more and
more resources to understand Tech Transfer, to create
awareness and to develop new TT initiatives with
leading research universities
 Focus is on research organisations which are leaders in
their respective fields and act in an entrepreneurial
environment
 Accelerated process through framework agreements
(covering issues such as company valuations,
shareholder structure,…)
 Several transactions already, in which EIF played a key
role
 Eager to do more…
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5. EIF Tech Transfer Transactions
Karolinska Development
Chalmers Innovation • EUR 26.7 m
• SEK 170 m • Signed Nov 2009
• Signed July 2008 • Co-investment fund, investing
• Investing in start-up companies alongside Karolinksa
originating from Chalmers Development in life science
University and incubated by the spin-outs throughout
Chalmers Innovation incubator Scandinavia
in Gothenburg
UMIP Premier Fund
Imprimatur (JEREMIE: development
• GBP 32m fund
objective)
• Signed April 2008
ongoing transaction
• Fund, managed by MTI, invests
• EUR 20,4m
in university spin-outs
• Expected Signature 2010
originating from the University of
• Seed & Start-Ups / Tech Transfer
Manchester
in Latvia
• Fund to be managed by the
IP venture fund UK local Imprimatur team in Riga
• GBP 31m fund
• Signed September 2006
• Fund invests 25% of all
financing rounds of IP group Leuven CD3 (Centre for
spinouts, originating from more Drug Design and Discovery)
than 10 UK universities • EUR 24m fund
• Signed Mid 2006
• Financing early stage drug
development projects
originating from Leuven and
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elsewhere in EU

6. Manchester the Largest UK University
Research Budget
Manchester University / UMIP Premier Fund
■ 10 year Limited Partnership.
■ Managed by VC firm: MTI partners
■ GBP 32 m raised. 18 months between
first pitch to EIF and first closing in
4/2008
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7. IP Group: Bringing together 10 Universities
- 74 Spin-outs in 3 years
IP Venture Fund UK ■ Co-investment fund (seed,
post-seed financing
■ Critical mass reached
through a network of
universities
■ Liquidity vs listing
Deal flow and
critical mass
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8. Case Study: Chalmers Innovation
Starting point: a proven tech transfer
and incubation process, creating approx.
10 start-ups per year
Process steps
Pre-Incubation Incubation “Alumni”
Start-up companies
projects
~6m 24-36m
Milestone Entrepreneurial mind Formed company Repetitive business
/ Deliverable Large potential Validated business Developed organisation
Unique idea CEO Board of directors
Control of IPR Business plan Secured longer term
Technology based Financial plan finance
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9. Case Study: Chalmers Innovation
The fund, managed by an enlarged
incubator team, invests in all steps
of the process
EIF Co-investors
“Fund” Seed Investors
Management team •Investments at commercial terms
Federal funds
•Incubator professionals •Investments in existing TTO start-ups
Regional funds
(industrial background) and new start-ups (both university IP
Other public/private funds
•Investment professionals based spin-outs as well as start-ups
attracted and grown by the BAs, VCs, …
•Maximum autonomy
incubator)
“Pre-seed funding” “Seed funding” “Post-seed funding”
Pre-Incubation Incubation Alumni companies
Tech Transfer process
Indicative EUR ~50k EUR 200-500k EUR 1-3m
amounts
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10. Case Study: Chalmers Innovation
Investment case for EIF
 Size and quality of deal flow
 The university generates an important flow of
innovations
 The region is a well functioning entrepreneurial
ecosystem
 The TTO delivers
 Breadth and depth of team
 Track-record in developing start-ups
 Invests before and at company creation
 Potential to have a significant impact
 Develop start-ups better and faster
 Capture a larger share of the value created
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11. Lessons Learnt 5 Years on
 Clear funding gap persists
 Tech Transfer is different to VC and has its own set of rules
 Not just spin-outs in the story but also licensing
 Long-term partnerships with research centres: build trust,
no individual entry valuations, ex ante agreements, no
dilution -- Privileged access to deal flow and “Bears’ hug”
 Increasing interest from private co-investors but still room
for improvement
 Longer time-horizon for business development and lead-
time
 Growing policy-maker focus
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12. Knowledge Transfer Strategic Partnership
 First initiative to address challenges and widen the reach and scope
Partners
 Signed in Rome - 16 June 2010
 Creation of joint Working Group between EIF/EIB, CDC (France),
(CDP – Italy), (CDTI - Spain), Innovationsbron (Sweden), KfW-
Bankengruppe (Germany) & Veraventures (Finland)
 Aim of like-minded Partners is to:
 Support the emergence of European and national Knowledge
Transfer Infrastructures
 Accelerate transfer of European research and technology to the
market
 Facilitate a well functioning Knowledge Transfer and Intellectual
Property economy
 Encourage more open and transparent marketplaces for
Intellectual Property
 Exchange best practices and potentially to analyse investment
opportunities jointly
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13. The Growing Importance of Fund-of-Funds management
(selected examples)
 ERP (launched in 2004)
Co-investment 50/50: EIF/ERP (administered by German Ministry BMWi)
 Size: € 1bn - € 642m committed in 20 funds
Copyright ERP  NEOTEC: Spanish Technology Fund-of-Funds (launched in 2006)
Tech fund in partnership with CDTI (TMT, ICT, cleantech, biotech and LS)
 Size: € 183m - € 117m in 11 Funds and Co-investment Agreements
 Istanbul Venture Capital Initiative (launched in 2007)
Turkish generalist VC investment vehicle for institutional investors
 Size: € 160m - 2 funds signed for a total of € 21m
 Portuguese Venture Capital Initiative (launched in 2008)
Generalists funds, ICT, Life Sciences, Healthcare, Environmental &
Energy Technology
 Size: € 111m – 2 transactions signed for a total of € 30m
 UKFTF: UK technology Fund-of-Funds (launched in 2010)
Launched by the UK government and advised by EIF
 Size: £200m at first closing to be invested in Funds targeting UK
start-ups and growth businesses in the high tech sector –
3 investments signed for £28m
12 Public Private Leveraging of EIF Capacity and Experience

14. How do we see the Nordic market?
Many strengths Worrying weaknesses
 High Quality University &  Difficult market conditions
Research Institutions to attract private investors
 Mature Market with  Withdrawal of certain
experienced investment
professionals fund managers
 Track records and  Withdrawal of certain
Success stories Pension Funds
 High cross-border  Global competition for
collaborations levels investment flows
 Strong entrepreneurial  Talent loss
environment
 Missed opportunities
 Many investment
opportunities
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15. Contacts
European Investment Fund
96 boulevard Konrad Adenauer
L-2968 Luxembourg
Tel.: (+352) 42 66 881
Fax: (+352) 42 66 88 200
www.eif.org
Jacques Darcy, Head of Technology Transfer & Intellectual
Property – j.darcy@eif.org
Graham Cope, Head of Region, Northern Europe Business
Development – g.cope@eif.org
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