solutions “We have no competition” - Technology Transfer Tactics

crunchkingofprussiaBiotechnology

Dec 6, 2012 (4 years and 11 months ago)

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Start Up Boot Camp

for University TTO Professionals
and Inventors

Session 3:

Creating a Solid Business Plan

Presents:

1

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In Partnership With:

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Your Panel of Presenters

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Moderator:


Gerard Eldering

is Founder and President of
InnovateTech

Ventures, specializing in venture creation based on inventions
licensed from universities and research institutions. Since the company’s founding in 2007,
InnovateTech

has supported
numerous mid
-
Atlantic universities and co
-
founded three start
-
up companies including
AlphaDetect

and
Trilumen
. Gerard
has been working in the technology transfer community for more than a decade and is passionate about the creation of
professionally managed and funded start
-
up companies. Prior to launching
InnovateTech
, he founded and served as
Director of the Technology Transfer Office at The MITRE Corporation. He is an MBA and a registered patent agent.



Presenter:


Jim Chung

is Director of the Office of Entrepreneurship at George Washington University, where he is responsible for
entrepreneurship programs and technology transfer. Previously, he was Director of the
Mtech

VentureAccelerator

at the
University of Maryland, where he assisted faculty and students in launching start
-
up companies based on University of
Maryland technology. Before the University of Maryland, Chung was Director of New Business Development at the
Corporate Executive Board, where he helped establish the company's mergers and acquisitions capabilities, including the
acquisition of IT Toolbox. Prior to the Corporate Executive Board, Chung was vice president of
Cherington

Capital (now
Intervale

Capital), a private equity firm investing in middle
-
market manufacturing and service businesses in the oil and gas
industry, where he helped execute the acquisition of
Ulterra

Drilling Technologies (formerly
Rockbit

International). Chung
spent five years prior to joining
Cherington

Capital in the venture capital industry, most recently at
incTANK

Ventures, an
early stage venture capital firm, where he served as managing director. He has experience leading or co
-
leading
investments into medical device, software, and information technology companies, including investments in
AgaMatrix

Inc. and
Nexaweb

Technologies, Inc. Before entering the private sector, Chung was an academic researcher studying how
business, government and academia work together to create new innovation in high technology industries. He served as
a research fellow at several institutions during his 10
-
year academic career, including Harvard University, MIT and the
University of Tokyo.


Your Panel of Presenters

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Charles
Cella
, Patent Attorney and Co
-
Founder of GTC, is a recognized thought leader and leading practitioner in the patent
and licensing fields. He provides patent strategy, licensing and technology
-
transaction services to a broad range of clients,
from industry
-
leading software companies to single
-
inventor start
-
ups. Prior to GTC, Charles founded and was CEO of
BountyQuest
, an Internet marketplace for information relevant to the strength, validity or applicability of patents and for
which he recruited investments from Jeff
Bezos

and Tim O’Reilly, among others. Previously, Charles was the first patent
attorney at Foley Hoag LLP, where he grew the practice to twenty
-
five people and advised high
-
tech and biotech firms of all
sizes on building IP portfolios and negotiating technology transactions.





Paul E. Rauch, PhD
, founder, Evan Law Group LLC, has prosecuted numerous patent applications in a broad spectrum of
technologies, including biotechnology, pharmaceuticals, polymers, materials, semiconductors,
microfluidics
, software,
business methods, electronics, telecommunications, manufacturing simulation and analysis, and consumer products. He was
a postdoctoral research associate at the Max
-
Planck Institute in Stuttgart, Germany, and at Harvard University. Dr. Rauch
counsels clients on maximizing the value of their intellectual property, including developing prosecution strategies and pate
nt
portfolios, as well as preparing validity, infringement, and freedom to operate opinions directed to a variety of products an
d
devices, including pharmaceutical compounds covered by FDA “Orange Book” patents. He has counseled domestic and
foreign companies on freedom to manufacture, import and market their products in the United States. His biotechnology
practice includes cases involving the diagnosis and treatment of many different disease states, stem cell therapeutic reagent
s
and methods, pharmaceuticals, and drug delivery systems. Dr. Rauch has impressive experience in prosecution of patents,
including reexamination and appeals to the Board of Appeals and Interferences, often personally presenting cases directly to
patent examiners. Prior to founding Evan Law Group LLC, Dr. Rauch was a Partner at
Sonnenschein

Nath

& Rosenthal, at
Brinks Hofer Gilson &
Lione
, as well as
Oblon
,
Spivak
, McClelland, Maier and
Neustadt
.

.


Legal Team:

Elements of a Business Plan

FIRST AND FOREMOST:

Audience (Potential Investors, Partners, Recruits)


Business Plan is Written for an Audience


Tailor your business plan to the audience you are addressing


Put yourself in their shoes to figure out what they would want to know


They all have different priorities



Executive summary


Market
-
focused strategy


Technology/IP


Execution/ Team


Financial Risk and return









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Business Plan is about:


Amount of planned investment / commitment



Determination of risk

»
Cost of determination

»
Accuracy of determination


-

Mitigate risk



Cost of mitigation

»
Benefit of mitigation


Maximize return


Risk can come from many sources:


Market, Team/Organization, Product/Technology, Regulatory, Financial


Increasing returns can come from many sources:


Revenue generation, cost reduction, economies of scale/scope, network effects


Key is to identify risks and develop mitigation strategy



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Managing Risk and Return


Problem & Solution Statement



Value Prop/Opp’ty


Problem


How Big?


Who’s the Customer?


How Fast is the Opportunity
Growing?


Solution


How You Solve It?


Necessary?


Timing?


Differentiation


Technology?


Business Model?


Relationships?


Price/Cost?


Defensibility


IP Protection?


Team?


First Mover Advantage

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Market Factors


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Market Opportunity


Highlight the Opportunity


Go to market strategy



Identify Market Risks


Customers


Market Size, Growth Rate, Structure


Marketing Channels


Current Competitors


Potential Competitors


Sales Cycle


Regulatory



Explain Market Risk Mitigation


Identify and Segment Customers for Value Proposition


Provide Market Sizing and Growth Rationale


Provide Competitive Landscape


Market Entry Strategy


Technology/Product Factors



Highlight the Opportunity



Identify Risks


Stage of Development



Timelines


Cost






Technology


Materials






Suppliers


Design






Standards



Explain Mitigation



Cost Analysis



Technology Development



Prototypes



Proofs of Concept



Secure Supply Chain



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Intellectual Property


IP value and risk factors


Protecting the market


Protecting the technology


Protecting the products


Competition Risk


Scope of patent protection


patentability


Timing of patent issuance relative to sales and marketing


Mitigation of Competition Risk


More patents (develop a portfolio)


Foreign application filings


Timing of foreign application filings (Paris Convention and PCT applications)


Expedited examination (Patent Prosecution Highway)


Freedom
-
to
-
Operate Opinion
-

Not appropriate for business plans


Too expensive


FTO search (about $10,000)


discover patents


FTO analysis of each patent ($30,000
-
$100,000 each)


Lack of accuracy


New patents may issue


Changes in product design or business strategy, selection of markets



Alternatives


Develop patent portfolio (“picket fence strategy”)
-

$10,000
-

$20,000 each U.S. patent


Business insurance


Avoid “willful” infringement (opinion of counsel)


Licensing





10

Execution/Team


Highlight Strengths


Core competencies match strategy



Identify Risks


Management Capabilities


Ability to Work Together


Ability to Learn


Shared Vision


Breadth and Depth



Explain Mitigation Strategy


Experience


Management


Advisory


History


Recruitment/Team Building



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Financial


Highlight Opportunity


Identify Risks


Amount Required


Key Assumptions


Availability


Growth/Cost Forecasting


Expected ROI


Comparables


Exit Options


Explain Mitigation


Thorough and Realistic understanding of requirements and potential returns


Right Sources of Funding


Exit Strategy


Pro Forma Financials


3
-
5 years


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Mistakes to Avoid


Technology looking for a solution


Assumed market share


Top
-
down assumptions versus bottom
-
up validation


Lack of customer understanding


“Nice to have” versus “Need to have” solutions


“We have no competition”


No clear revenue model or path to profitability


Incomplete team


No metrics to measure progress


Lack of focus


Failure to address risks head
-
on


Balance cost of risk determination with level of investment and time to
market


Don’t be pressured into expensive risk determination
-

accuracy or
value of analysis must justify cost


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Q&A


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Utilize the chat box to the bottom left of your
screen to submit a question to the panel. Please
address your question to a specific presenter.


Or


Press * 1 on your touchtone phone and this will
place you into the phone queue.

Introduction to Session Four

(June 24, 2010)

Funding Options and Opportunities


Attracting and seeking out the right investors


Identifying what type of funding you need and
when


Structuring the investment


Investor turn
-
ons

and turn
-
offs


Common terms and pitfalls to avoid


Current investment landscape and 2011 forecast


And more…


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