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Equity Crowd Funding for Tech Transfer
…based on some experience!
Brian McCaul Director of Innovation
CEO Qubis Ltd Queen’s University, Belfast
Equity Crowd Funding for TTOs
…scaling up and collaborating!
What?
Why?
How?
Not about …
of platforms…
For University Commercialisation
but how to
What?
Insert 3 icons
Why?
And especially why for universities & commercialisation activity
Because could be the biggest shift in our sector
Research Development
Tech transfer
Commercialisation
Market Entry
Valley of Death
Prof
it / L
oss
time
Crowd Equity focuses on smaller seed rounds Nearer to the TTO
Mainly Startup and early stages
Mainly Tech
EIS & SEIS Angel Cofund
!!
Displacing Angels which were themselves displacing VCs in this space Investor Friendly: generous tax breaks
…or EII here
Founder Friendly deal terms and re-balancing the power
A successful crowdfunding campaign can serve as a positive signal for other funders and can help you attract more
funding or funding at better terms. Liam Collins, Nesta
“
”
!!
More scalable funding market
!
!
More scalable funding market
It’s leaner Tests demand
Early Validation & Fast Failure
It’”⁹s more than just funding…
Equity based crowd funding increase revenue 351% - not inc funding
Not only tests demand but creates demand
Survey of several hundred firms randomly tested that used crowd or other forms of finance for sponsored by Ellenoff Grossman and Scholes LLP
more significantly…
The largest early-stage seed market in the UK
Countries taking the leap: UK, USA, NZ, France, Italy India & Japan
Many others - including Ireland - deciding whether to jump …
The Seed Market
In 2013, angel networks were replaced by government-backed funds, followed by crowd funders, as the top funders
More than the next 2 together…
“…these platforms have delivered over a hundred investments so far in 2014”
The Crowd is slaying the Dragons….
growing at 580% last year
“32% thought it was the most likely funding choice in the next 12 months.
!
!
!Figures from Irwin Mitchell suggest that crowdfunding has come a long way since being regarded as just a niche option for funding a business.
Entrepreneurs are doing it…
”
Venture capitalists are doing it…
£750,000 £750,000 == £1,500,000+
=£3,800,000 £1,200,000 £5,000,000+
£6,000,000 £1,420,000 £7,420,000=+
Publicly-listed, winemaker and craft brewer Chapel Down (listed on ISDX) launched a £1.6M crowdfunding campaign on Seedrs. In three weeks, they overfunded to almost £4M, from around 1,400 investors
Even PLCs are doing it…
the largest equity crowdfunding campaign ever. http://blog.seedrs.com/2014/09/26/crowdfunding-public-companies/
Why aren’t TTOs doing it?
Technology from MMU Over-raised £700,000 from 37 angel investors
!
Raising funds with SyndicateRoom was quick & efficient and it also helped us to raise our profile through
press coverage on Forbes and TechCrunch. !
Lord Douglas Dundonald: Chairman, Radio Physics Solutions
“”
Mindlflood
Better Terms Completed Round Agile Valuation De-risked
Hit target in 48 hours!
Testing Valuations - Pre-IPO…?
So…
either pick a platform to pilot a project
orwhy don’”⁹t we work together to coordinate an Irish university sector approach
Why don’”⁹t we have a go…
Who to start with:
FCA regulated
Significant investment record
Big pool of active investors
Significant deals size and quantum !
That’s it! !
Which narrows it down to 1 or 2 maybe 3 platforms at most
Crowdcube biggest most active and cheapest Seedrs more managed & have convertible loans
Syndicate Room for larger angel investments
but it’s only scalable if your TTO or team is scalable and that’s only scalable if you engage external entrepreneurs
!
crowdfunding is not a way of increasing your network you need to build a strong one in the first place.
Each project needs a rower
Significant investment is required before a project is launched
And a credible team - & these can’t all be from the TTOs
DDIY Don’t do it yourself
use an intermediary as a Rower if you want to scale up the process
Exploit an existing network Help prior project validation prioritise competing projects
For a TTO / University that wants to do one, two… many crowd campaigns…
a strategy to allow you to scale and handle more than one at, a time is a necessary precursor
you need to out-source (crowd source) a supply of credible rowers even before
you get to campaign tactics!
Could we create an all-Ireland Commons Network?
Emma Nolan !Liverpool John Moores University!IP & Commercialisation Manager
!Inhaled Drug Particle Dissolution Device... !!!!!!!
!! !The inhaled drug particle dissolution device (IDPDD) aims to provide both a reliable and reproducible method by which to probe drug release from inhaled formulations, whilst at the same time being pharmaceutically and biologically relevant. !Here, the underlying objective is to mimic, as closely as possible, the in-vivo scenario. The data we have generated confirm the suitability of the IDPDD to assess the dissolution profile of inhaled drug particles in a pulmonary environment. !In each case the results demonstrate a trend for increasing drug concentration within solution with respect to time. !!
Ideas Management Cash
Text• Facili&es!–!making!the!‘leading!edge’!available!
• Feasibility!–!preliminary!inves6ga6ons!
• Funding!–!securing!support!for!collabora6ve!research!
£86,000 !TSB SMART Award...
... 6 months to raise match
Angel Funding...
£0
£23,333
£46,667
£70,000
£93,333
£116,667
£140,000
10/03/2014
12/03/2014
14/03/2014
17/03/2014
19/03/2014
21/03/2014
24/03/2014
26/03/2014
28/03/2014
30/03/2014
01/04/2014
03/04/2014
05/04/2014
07/04/2014
A v B Shares
Lowering of A share threshold
HMRC SEIS Advanced Assurance
Angels/HNWI
The campaign...in real time
£0
£23,333
£46,667
£70,000
£93,333
£116,667
£140,000
10/03/2014
12/03/2014
14/03/2014
17/03/2014
19/03/2014
21/03/2014
24/03/2014
26/03/2014
28/03/2014
30/03/2014
01/04/2014
03/04/2014
05/04/2014
07/04/2014
A v B Shares
Lowering of A share threshold
HMRC Advanced Assurance
Angels/HNWI
Overfunding
The campaign...in real time
Question Forum...
Austria(
Czech(Republic(
Denmark(
Eire(
France((
IOM(
Israel(
Kuwait(
Luxembourg(
NI(
Russia(
Scotland(
USA(
Wales(
Scotland(
England(
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Investors By Country
Investors By Region
Average Investment £1,015.53
Largest Investment £15,000
Syndicate Investors £34,980
Lowest Investment £10
The final scores...
A"Ordinary"
B"Ordinary"
1.Idea 2.Market Potential 3.Team
Top 3 Reasons for Investing:
Lessons learned..?
Be Agile
Set Minimum Investment
De-risk it!
Thanks for listening!
Emma Nolan !Liverpool John Moores University!
Savvy VCs, not least of which included Virgin CEO Richard Branson, threw money at it—to the tune of $30 million. It was the
largest early investment raised in Silicon Valley’s history.
Whe
n it’s
the
Cro
wd
Vs. I
nves
tors
to
Dis
cove
r Fra
ud, C
row
dfun
ding
Win
s
Out-takes….
https://www.indiegogo.com/projects/healbe-gobe-the-only-way-to-automatically-measure-calorie-intake#home
https://www.indiegogo.com/projects/healbe-gobe-the-only-way-to-automatically-measure-calorie-intake#home
![[Crowdfunding] Equity Based CrowdFunding platform _Opentrade](https://img.pdfslide.us/doc/110x75/589a9d6e1a28abfc1a8b4c51/crowdfunding-equity-based-crowdfunding-platform-opentrade-59106092114ac.jpg)
