Investment seed & start-up funds as a catalyst for economic development & diversity

Paul FieldTechnology Transfer Manager

Qatar Foundation

• Founded in 1995 by His Highness the Emir Sheikh Hamad bin Khalifa Al-Thani

• Chaired by Her Highness Sheikha Mozah bint Nasser Al-Missned

• An independent, nonprofit organisation committed to the development of Qatar and its people

Qatar Science & Technology Park

• Home for international

technology companies• Incubator of start-up

businesses

Education City

Al Shaqab stud, ‘08

QF Housing

Hotel, ‘10

Commercialcentre, ‘10

Golf course, ‘10

Sports centre, ‘10

QF HQ

Schools• Qatar Academy• Bridge program

• The Learning Centre

Virginia Commonwealth University Qatar

• Graphic, fashion and Interior Design

Weill Cornell Medical College in

Qatar• Medical school

Texas A&M Universityat Qatar

• Engineering (4 streams)

Carnegie Mellon Qatar

• Computer science• Business

Georgetown University in Qatar

• Foreign service

Conventioncentre, ‘10 Sidra Medical and

Research Centre, ’10

• Treatment, teaching and research

Qatar’s R&D Growth

• 2.8% of Qatar’s GDP to R&D activity• Education City Universities• SIDRA medical and research endowment

c.US$7bn• QNRF• Overseas attraction to first class organisations’

into region

Emerging Technology Centre• 12,000m2 over 2 levels + podium

• leases from 45m2

• incubation focus• cafes, shops, common facilities

• opens ‘07

Innovation & TechnologyTransfer Centre 1

• 1500m2 x 2 stories x 4 wings• leases of 500 – 6000 m2

• shell office and lab space• opens ‘07

Innovation & TechnologyTransfer Centre 2

• twin of ITTC 1 • opens ‘07

National Data Centre• “Tier 4” data centre

• IT services within and beyond EC• independently managed

• opens ‘09

Phase 1

Site of 120ha, Phase 1 is 35ha•controlled access and circulation

• underground parking• building management

Objectives

• Promote applied research, technology development and commercialisation in Qatar

• Grow and diversify Qatar’s economy through application of technology

• Accelerate formation and growth of start-up technology companies

• Create high-value employment and development opportunities, in particular for Qatar’s university graduates

QSTP Provides

• Accommodation, Services, Support– commercialisation programs

• Dedicated facilities and services for R&C• Access to world-class research institutes

EconomicDevelopment

Management

Technology F

inan

ce

Corporate Research

Proof of Concept Fund

Research Grand Challenge

New Enterprise Fund

Technology Venture Fund

MentoringEntrepreneurshipWorkforce Development

Qatar IP OfficePatent System & Laws

Investor Readiness Program

Research Networks

Support for commercialisation

Technology Transfer

• The process of developing practical (commercial) applications from the results of scientific research

• The formal transfer of rights to use and commercialise new discoveries and innovations

The funding issue in Qatar• Lack of investment finance to assist in forming &

developing technology related businesses• Financial community looking more favourably on

retail/property enterprise start ups• Will not meet macro economic diversity targets

The American Funding Phases

The Equity ‘Gap’

• Harder to raise US$1m than US$100m

• More risk - often pre-revenue• more effort required - mentoring, hands-on role• Often idea through a committed academic• Time to liquidity - exit 5+ years

• Limited Seed/Start up funds in the region (Injazat, UAE)

“The Challenge for Qatar”(challenge for all !)

To ‘bridge’ the ‘gap’ and to provide a sustainable source of finance for

start up businesses

Adopt International Good Practice

• Enterprise development funds provided by public sector vehicle or a mix of public/private sector partners and match funding

• Pump-priming a Middle East VC industry

Private Equity required in MENA

• Seed/Start-up funds

Purpose is to refine, develop and market test IP, prototypes or concepts

Characteristics are non trading, no firm business model

Objective to verify commercial viability, test route to market & build management team

Opportunity Pipeline

• Internationally university spin outs are an emerging success story

• Exponential growth in R&D leading to commercial opportunities

• Attraction of a growing economy• Opportunities of regional significance - e.g.

medical

UK Case Study

• 191 active funds, 26% publicly backed• Over half of funds’ size is less than US$25m• Average investments p.a. 5• 50% specialist, 50% generalist• US$320m raised for university spin out activity in

2006• 35% of spin outs raise external finance• 7% of university spin outs have gone public or

been acquired

U.S. Market

• US last 10 yrs US$12.6bn invested at seed stage• Over 5,000 university spin outs since 1980• MIT, Stanford• Organisations which have benefited overseas

include; Apple Federal Express, AOL, Google

Contact

www.qstp.org.qa

info@qstp.org.qa

+974 492 7093