Creating Marketplace Value

from university intellectual property

© Tekcapital plc 2016

www.tekcapital.com

Clifford M. Gross, Ph.D.+1 305-200-3450

cgross@tekcapital.com

V Red OTT Congreso Transferencia de Tecnología:

"Un negocio sin fronteras" Nov. 4th, 2016Hotel Real Inn

Tijuana, Baja California

INVENTION DISCOVERY NETWORK80% of the world’s university-developed IP is produced

by ~4,500 research institutions in 160 countries.

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Technology Transfer is a Marketplace

The World’s Research Institutions file more

than 100,000 Patents per year

SUPPLY

TECHNOLOGYTRANSFER

Innovations to improve & expand

corporate products

DEMAND

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Technology Transfer: From Concept to Commercialization

Scientific Discovery

Invention Disclosure

Assess Patentability & Commercial

Potential

Patent Filing

Commercialization

Plan

License

or

Spinout

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Technology Transfer: Patent Costs & Timeline

Decide to File a Patent

File

Provisional

Application

Convert

Provisional

Application

Office

Actions

US Patent

Issues

US Patent

Maintenance

Fees

1 Year

$10-20K

2.5+ Years

$5-20K $6.5-13K

PCT 2.5 Years & $100K+ Including National Phase based on countries selected

Typical patent investment = $120K +

for international protection of IP rights

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Before you Invest: Assess the Market Potential

Strengths

Access to economies of scale

Competitive advantage over

existing technology

Level of sales

Weaknesses

Technological uncertainty

Cost for commercialisation

R&D development time

& expense

Opportunities

Market growth

Market niche fulfillment

Patent infringement Technology

addresses an unmet need

Threats

Barriers to entry

Competitive pressures

Uncertain user adoption

Commercial Opportunity

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Before you Invest: Assess the Market Potential

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High Performing University Tech Transfer Offices

Inventions: 371 (2013)

Licenses & Options: 89

Licensing Revenue: $146m

Startups: 13

Inventions: 672 (2013)

Licenses & Options: 45

Licensing Revenue: $80m

Startups: 16

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Patent Applications from Mexico Growing (2014 & 2015)

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Patent Activity and Technology Exports

Source : Peter Neuhäusler, Fraunhofer ISI, Breslauer Strasse 48, 76139 Karlsruhe, Germany,

Peter.Neuhaeusler@isi.fraunhofer fraunhofer.de

http://www.isi.fraunhofer.de/isi-wAssets/docs/p/de/vortragsfolien/innovationsindikatoren/export_value_en_pn.pdf

Research Question:Is there a correlation between the patenting behavior of countries and their economic success on international markets?

Answer: Yes, patents are significantly correlated with exports and therefore can be used as a predictor of export activities

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Average Returns for VC Investments (2014)

• According to research by William Sahlman at the Harvard

Business School, 80% of a typical venture capital fund’s

returns are generated by 20% of its investments.

• Over the past 10 years, venture capital has been a difficult

asset class to invest in. According to Cambridge Associates

the average annual venture capital return over the past 10

years has only been 8.1% as compared to 5.7% for the S&P

500.

Sources:

http://nvca.org/columns/2551/

https://blog.wealthfront.com/venture-capital-economics/

• The top 20 VC firms (out of approximately 1,200 total VC

firms in the US) generate approximately 95% of the industry’s

returns.

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• Technology transfer is venture capital investing

• To enhance success, well defined investment criteria

and careful invention selection is paramount

• Due diligence needs to focus on both patentability and

marketability

• There are long timelines before economic returns

(4 years¹+)and returns are binary (e.g., many will fail)

• As with any VC investment you need to leverage local

competency, play to the strength of your eco-system

and select high potential targets

Technology transfer is the business of selecting early-stage

technology winners and building the right paths for

commercialization and successful returns

¹Source: http://bryan.uncg.edu/assets/research/econwp/2013/13-10.pdf

Take Away

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Tekcapital’s Invention Discovery Network creates a competitive advantage for acquiring &

commercializing university technologies

Client-driven

Technology

Acquisitions

Provides tailored reports that identify

relevant, scientifically screened and

immediately available university IP

Invention

Evaluator ®

Provides objective analysis of the market

potential of new IP

Vortechs

Group

Provides placement services to strengthen

your in-house technology transfer

team

Technology

for Sale

Provides previously acquired university IP

which we have enhanced to prepare for commercialization

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Our Technology Transfer Services

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Select Clients