Leading Edge of CommercializationA Case Study

Robin Winsor

There is a tide in the affairs of men,Which, taken at the flood, leads on to fortune;Omitted, all the voyage of their lifeIs bound in shallows and in miseries

Julius Caesar. Act IV, Scene 3

Agenda

• Technology Description

• Timeline

• Struggles, Setbacks and Successes

• Lessons Learned

• What’s Changed

What does IDC do?

Competing Technologies circa 2000

Kodak GE / Seimens CaresBuilt SwissRay IDC

Kodak Fuji Agfa

CMOS

Market

125k

Cost (US$)

350k DR

CR

FILM

Large hospitals

Small & MediumHospitals

Clinics

45 secs

8.5 mins

8 mins

Foothills+

Market

125k

Cost (US$)

350k DR

CR

FILM

Large hospitals

Small & MediumHospitals

Clinics

750

10,000

Uncounted

Market

125k

Cost (US$)

350k DR

CR

FILM

Large hospitals

Small & MediumHospitals

Clinics

750

10,000

Uncounted

IDC : 45secs : <$150k

TimeLine

November 8th, 1895

November 8th, 1995

TimeLine

MutinyClinical TestingRegulatory Approvals

Clinical UseNew Products New Building Rapid Expansion

U.S.”Expert” arrives

N.AmericanSalesU.S.”Expert”

leaves

Downsize Mgmt financing Liquidate assetsLuminary Sites

Scientific Validation $$ Revenues $$

Production Ramp-Up Rapid Revenue Growth International Distribution OEM Partners

19-Oct-89 15-Jul-92 11-Apr-95 05-Jan-98 01-Oct-00 28-Jun-03 24-Mar-06 $100,000

$1,000,000

$10,000,000

$100,000,000

$1,000,000,000

Company Value Over Time

Market Cap

Futures

Lessons Learned

• Trust

• It has to be earned

• Don’t discount the bizarre

• Beware of new friends in good times

Lessons Learned

• Contingency Plans

• Save for a rainy day… it rains a lot !

Lessons Learned

• Build The Right Team For Each Stage

• Scientists NEED marketers and financiers and …

• Management team must complement, not duplicate,

each other

• Finder / Minder / Grinder

• Expect and celebrate change in the lineup

• Do the paperwork

Lessons Learned

• Build An Active Board

• Think carefully before putting a customer on BoD

• Don’t appoint for appearances sake, make it WORK

• Try for diversity

Lessons Learned

• Know When To Let Go

• If you can do it all, you’re not doing enough

• “There is no limit to how much a man can

accomplish or how far he can succeed as long as

he doesn't mind who gets the credit”

Lessons Learned

• Know What You Do

• Core competencies

• Be clear

• Keep checking for drift

Lessons Learned

• Lawyers Can Be Your Friends

• Don’t cheap out on legal services

• Understand their specialities

• Look for chemistry

• File plenty of patents

Lessons Learned

• Pay Your Taxes Happily• Cybera

• National Research Council (NRC)

• Industrial Research Assistance Program (IRAP)

• Alberta Heritage Fund for Medical Research

• Shad Valley

Keep it in Canada

Lessons Learned

• Culture

• Why do you and your staff work so hard – is it for the

same reasons ?

– Fun

– $$$ / Options

– Vision

Corporate Vision

To provide the highest quality, most cost- effective digital

radiography (DR) products in the

healthcare market

Vision

Tuberculosis35% of the world’s population infected

Lessons Learned

• Believe In Angels

• Douglas Street

• Geoffrey Galley

• …and be sure they believe in you

Lessons Learned

• Retail Investors

• Most brokers don’t care

• Learn the elevator pitch

• Expect turbulence

Lessons Learned

• Institutional Investors

• Fund Managers DO care

• Know your numbers

• Expect to be held accountable

Lessons LearnedAREA

ImageQuality

RadiationDose

Cost

NorthAmerica 1 2 3

Europe 2 1 3

Asia 2 3 1

Lessons Learned

China is a huge marketChinese prefer ChineseProtect your IP, then go

What Has Changed

What Has Changed

• Barriers to entry

– Equipment costs falling

– Information easy to access

– Regulatory is a little easier

– Computing power increased by ~8000 x

– Design, prototype cycle reduced from weeks to days

– Competitors know what you’re doing

What Hasn’t Changed

• Need for a good team

• Need for financing

• Need for hard work

• Need for speed

Team Building / Networking Tools

Collaboration / Information Portals

Government & NGO Assistance

TechnicalAnalysis

TechnicalFeasibility

EngineeringPrototype

Pre-productionPrototype

ProductionProduction

Support

MarketNeeds

AssessmentMarketStudy

StrategicMarket Plan

MarketValidation

Sales &Distribution

MarketDiversi-fication

VentureAssessment

EconomicFeasibility

StrategicBusiness

Plan

Financingthe Venture& Business

Start-up

BusinessGrowth

BusinessMaturity

TechnologyDevelopment

MarketDevelopment

BusinessDevelopment

MatureCompany DevelopmentConcept

Goldsmith Model for Commercialization

Innovation Resources

51

Calgary Technologies TCI Programs

Entrepreneur Coaching Services

Financing Your Vision

EntrepreneurBoot Camps

ProgramFocus

Initial Entrepreneur Consultations – any stage or issue

Comprehensive Overview of financing alternatives

Investor-ready business plan and investor pitch coaching

Market Target

Entrepreneurs with ideas and issues with active businesses

Pre-financed startups with a business plan

Start-ups at or near revenue, seeking angel or VC capital

Format On demand with staff and Entrepreneur-in-Residence - no defined length

1 day seminar delivered by industry experts; offered quarterly

2 day seminars and mock investor panels; offered quarterly

Cost No cost but limited time

$ 300 $500

ClientsEngaged

~165 31 40

2002

2002

1997

Technology Commercialization and Incubation

Updated: Jan, 2010

2009

52

Calgary Technologies TCI Programs

Go-To-MarketReadiness

Alberta Deal Generator

Innovate AlbertaVoucher Program

Program Focus

Develop market strategy and launch plans for growth companies

Connect growth companies with angel capital

Advise clients on application, match to service provider and administrate voucher program.

Market Target

Companies seeking assistance to launch new products

Start-ups seeking first round of external capital

Companies from concept to growth stage engaged in commercialization

Format Yearly 6 month workshop

4 forums per year in Calgary and Edmonton

Semi-annual program cycle – project length ~6 months

Cost $1800 $1500 + 2% success fee $1000 - $4000 based on voucher/project complexity

ClientsEngaged

9 25 ($1.4+ M raised) 33 ($650,000 project value)

2007

Updated: Jan, 2010

Technology Commercialization and Incubation

2003

2009

2009

There is a tide in the affairs of men,Which, taken at the flood, leads on to fortune;Omitted, all the voyage of their lifeIs bound in shallows and in miseries

On such a full sea are we now afloat, And we must take the current when serves, Or lose our ventures.

Julius Caesar. Act IV, Scene 3

? ? ? Questions ? ? ?