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INNOVATION
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Singular ID
The Story of Commercialising a Materials Technology in Singapore
Adrian BurdenCo-founding Director of Singular ID
President Europe of Bilcare Technologies
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Overview• My background
• Phase 1 – R&D
– Materials R&D project and applications
– Proof-of-principle
– Business Planning
• Phase 2 – spinning-off
– Venture capital finance & operations
– First customer & manufacturing partners
• Phase 3 - growth
– Overseas expansion, new applications
– Product launch, further financing
• Phase 4 – exit
– Acquisition
– New opportunities and future prospects
2002
2003
2004
2005
2006
2007
2008
2009
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• MA Cantab, University of Cambridge• Natural Sciences (materials)
• D.Phil. Oxon, University of Oxford• Department of materials, electron microscopy of carbon
• Founding President of the OU lifesaving club
• Raychem Ltd, UK• Corporate R&D, conductive polymer composites
• University of Surrey, UK• Post doctoral research – amorphous carbon films
• Printable Field Emitters Ltd, UK• R&D Manager – field emission display technology
• Institute of Materials Research & Engineering (IMRE)• Senior Scientist and Business Development Manager
• OLED technology, ON-Singapore & Technology Roadmapping
• Singular ID Pte Ltd• Founding CEO
• Bilcare Technologies• President, Europe
My background
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Phase 1 – R&D
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Phase 1 – the R&D project
Singapore
2003 2004 2005 2006 2007 2008
R&D Project – IMRE / A-STAR
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Phase 1 – the R&D project
• Magnetic hard disk drive technology
– Quest for ever-denser information storage
– “In-plane” to “out-of-plane” magnetic bits
– Materials R&D – nanotechnology of candidate films
– Highly regular and uniform disk media – very difficult!
Image source: Hitachi Global Storage Technologies
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Phase 1 – the passport analogy
Passport number
•Serial # or index #
•Makes searching a database
quick and easy
Photograph, signature or
fingerprint
•The security / biometric
Barcode
•Serial # or index #
•Makes searching a database quick
and easy
Materials “fingerprint”
•The security feature
•Cannot be replicated
Giving products “fingerprints”
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Phase 1 – applications: the problem of counterfeits
Authorised
factory
Authorised distribution
Grey market diversion
Product overruns
Copycat
factory
R&D $
Quality
Testing
Brand owner
Counterfeit products
Impact on Brand Owner
Lower margins
Unforeseen liabilities
Distribution license issues
Lost revenues
Over supply
Increased warranty claims
Lower margins
Lost revenues
Increased warranty claims
Brand erosion
Product liabilities
Interpol estimates 5-7% of world trade involves counterfeits
This is equivalent to over USD 500 billion in lost sales
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Phase 1 – leading to a proof-of-principle
•Credit cards and paper with “fingerprint” tag
•Scanner with sensor and electronics
•Mobile phone and software
•Back-end database
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Phase 1 – R&D - Highlights• Proof of Principle
• Publicity
– “Singular ID”
• Market Research
• Business Plan
• License Agreement
Explaining the technology to the President of
SingaporeSigning of the license agreement
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Phase 1 - our toolbox
• Laboratory log books
• Travellers / process control
– TRAV 1.1, 2.1, etc
• First-cut roadmap
• Non-Disclosure Agreements
• Executive Summary
– EXEC 1.1, 1.2, etc
• Business Plan
• Information sheets
• Presentation
• License Agreement (and benchmarks)
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Phase 1 - our first-cut roadmap
Market trends
Finance &
Revenue
Infrastructure
Accreditation
Staff
Revenue
Materials
Tag
Scanner
Dispenser
Database
Mid 2005
Spin-off2006 2007 2008
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Phase 1 – looking back
• What we did well
– Kept detailed records of all work and correspondence
– Created an internal shared IT resource
– Used government funding to create a proof-of-principle
– Filed 2 patents that became a good foundation
– Negotiated a fair / rigorous license agreement
– Started some early branding & publicity
• Where we could have done better
– Secured venture finance before „spinning-off‟
– Found a customer before „spinning-off‟
– Had a more relevant „hand-held‟ prototype device
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Phase 2 – Spinning Off
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Phase 2 – spinning-off & starting operations
Singapore
2003 2004 2005 2006 2007 2008
R&D Project – IMRE / A-STAR
1st runner-upfinalist
winner Series A
Acquired by Bilcare
Spin-off company
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Phase 2 - why Singapore?Incubators &
Science Parks
National infrastructure &
capability
Universities &
Research Institutes
Basic research
Platform technology
Application driven
Prototypes
Business development
Sales
Supply chain integration
Scale-up & manufacturing
Overseas Marketing & growth
R&D
equipment
Education
IP generation
Business
acumen
Corporate
governance
LogisticsIT &
infrastructure
Start-up
community
R&D grants
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Phase 2 – why Singapore?
• R&D – Science, Engineering, Biomedical
• Applied research and enhancement schemes
• Economic development
• Attracting MNCs, supporting SMEs
• Standards and Productivity
• Supports technology and commerce
• International Enterprise
• Overseas expansion and branding
• Infocomm Development
• IT and infrastructure focused
Other agencies and organisations play important roles too
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Phase 2 – Spinning off - Highlights
Investment from Advance Nanotech
Production Partners
Product Development
Winner of Major Business Plan Competition
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Phase 2 – our operational model
Established
hardware suppliers
Scanner
contract manufacturers
Tag and Label
contract manufacturers
Internet & Mobile
service providers
Singular ID
IP & Systems Integration
Data management
Out-sourcing & partnerships
Customers
Channel Marketing
Joint ventures
Brand security companies
IT Platform companies
Leveraging on
alliances
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Phase 2 – lucky break
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Phase 2 – our toolbox
• Company templates – NDAs, Travellers, etc
• Employment contracts
• Accounting package (Excel to start!)
• Term sheets / Investment Agreements
• Letter Agreements
• PO system, Invoice system, CRM
• Budget sheets
• Board Reports
• Server
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Phase 2 – looking back
• What we did well
– Moved into presentable „incubation‟ premises
– Generated publicity
– Secured venture finance
– Obtained a customer and had focus
– Watched the cash flow carefully
– Secured a government R&D grant
– Won a significant business plan competition
• Where we could have done better
– Secured a bit more finance
– Captured more of the „lower end of the market‟
– Added a more senior member to our team earlier on
– Used a good accounting package early on
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Phase 3 – Growth
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Phase 3 – growth
Singapore
2003 2004 2005 2006 2007 2008
R&D Project – IMRE / A-STAR
1st runner-upfinalist
winner Series A
Acquired by Bilcare
Spin-off company
winner
Padua, Italy
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Phase 3 - our first customer
• Sanden, air-conditioning compressor
Sanden Non-Sanden
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Phase 3 – Sanden’s production line
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Phase 3 - fashion & luxury sector
Partnership with Euromark
• to make enxure labels for the European
luxury goods segment
Euromark overview
• holds about 30% market share of labels for
European handbags and clothing
Current status
• Identified European launch customer
• Labels passed all customer’s testing to date
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Phase 3 - no to fakes
• Visit www.notofakes.com for more information about fake products
• As a brand owner you can connect with customers using our hosted page service
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Phase 3 – Growth - Highlights
Minister of State for Trade & Industry,
Singapore, attended product launch
Awards
Launch Customer
New Investors
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Phase 3 – our toolbox
• Accounting package (MYOB)
• More term sheets / Investment Agreements
• Detailed due diligence directories
• Extensive warrants and disclosures
• Product literature & user manuals
• EULAs and other Terms & Conditions
• Patents, trademarks, domain names management
• Publicity archive
• Permanent exhibits
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Phase 3 – looking back
• What we did well
– Continued to keep the information flowing
– Had serious „acquisition‟ discussions
– Used students to keep the cost down
– Launched a product
– Continued to watch the cash flow
– Secured another government R&D grant
• Where we could have done better
– Been less distracted by range of commercial opportunities
– Raised money overseas more quickly
– Organised our IT system ahead of future staff expansion
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Phase 4 – Exit and the future
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Phase 4 – Exit and the future
2003 2004 2005 2006 2007 2008
R&D Project – IMRE / A-STAR
1st runner-upfinalist
winner Series A
Acquired by Bilcare
Spin-off company
winner
Bilcare company
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Phase 4 - Bilcare
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Phase 4 – Highlights
New range of products
The nonClonableTM system
More awards
Rebranding and new
marketing material
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Phase 4 - the future
nonClonable™ reader
Scan then touch
Bluetooth
Phone, PDA, laptop, PC
Results via GPRS / internet
nonClonable™ label
DataMatrix & fingerprint
combined
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Overall - looking back
• Positive
– Our technology is „defect tolerant‟
– Singapore was an excellent place to start a business
– We had a clear vision and stayed focused
– We learnt a huge amount in a short space of time
– We kept the news flowing
• Negative
– Raising early stage funding for high technology was extremely difficult
– There are lots of balls in the air when you run a technology start-up. You need to quickly learn to juggle!