IP Impact on Funding - Perspectives from the Field Castel Commercialization of Academic Research Key Considerations in Securing Funding Early Stage Collaborative Research Primary concern is project can lead to economic impact Science and engineering advancement Novelty - has it been done before? disruptive vs incremental Develop / cultivate HQP Early Stage Commercialization Customer pull or Technology push Market opportunity & value proposition Technology differentiation & competitive advantage Ability to attract on-going investment Late Stage Commercialization License transfer Start-up Patents, Source Code, Trade Secrets and Know-how are the primary focus of IP portfolio Commercialization of Academic Research Key Considerations in Securing Funding Early Stage Collaborative Research Primary concern is project can lead to economic impact Science and engineering advancement Novelty - has it been done before? disruptive vs incremental Develop / cultivate HQP Early Stage Commercialization Customer pull or Technology push Market opportunity & value proposition Technology differentiation & competitive advantage Ability to attract on-going investment Late Stage Commercialization License transfer Start-up Patents, Source Code, Trade Secrets and Know-how are the primary focus of IP portfolio

IP Impact on Funding - Perspectives from the Field Castel Typical Academic Tech Funding Roadmap Basic Research - Discovery NSERC Institution, Canada Research Chairs, donations, endow, etc. Collaborative Research: NSERC, NCE, ISTP MRI, OCE, Industry Institution Pre-Commercialization: MRI - OCE Market Readiness, ORCP, C4, etc. NSERC i2i Institution (WIF, Tech Transfer depts, etc.) Friends & Family, Innovation Networks, NFPs, Foundations Commercialization Seed: MRI IAF, IDF, NCE-CCR EDC, BDC, NRC-IRAP, Precarn Angel, OCIF, Venture Capital Typical Academic Tech Funding Roadmap Basic Research - Discovery NSERC Institution, Canada Research Chairs, donations, endow, etc. Collaborative Research: NSERC, NCE, ISTP MRI, OCE, Industry Institution Pre-Commercialization: MRI - OCE Market Readiness, ORCP, C4, etc. NSERC i2i Institution (WIF, Tech Transfer depts, etc.) Friends & Family, Innovation Networks, NFPs, Foundations Commercialization Seed: MRI IAF, IDF, NCE-CCR EDC, BDC, NRC-IRAP, Precarn Angel, OCIF, Venture Capital

IP Impact on Funding - Perspectives from the Field Castel Typical Patent Roadmap (Commercialization Stages) Provisional Customer discovery Engage potential channel partners and investors Minimize cash burn PCT Buys time for learning and discovery through customer engagement while technology and commercialization plans are validated and mature Minimize cash burn Utility Ready for “Round A” financing Customer development and product launch Maintenance Company building Typical Patent Roadmap (Commercialization Stages) Provisional Customer discovery Engage potential channel partners and investors Minimize cash burn PCT Buys time for learning and discovery through customer engagement while technology and commercialization plans are validated and mature Minimize cash burn Utility Ready for “Round A” financing Customer development and product launch Maintenance Company building

IP Impact on Funding - Perspectives from the Field Castel Impact of IP on Obtaining Research Funding Institution (Uni or College) Varies widely with Institution and PI Different for Basic Research -> Commercial exploitation Often a prerequisite to take on as commercialization project Mostly fund IP filings Government Important in commercialization stage Often fund (Provisional) IP filings Industry Participation 3d party IP rights often a deterrent to due to cost, complexity, time to market Market opportunity and ability to exploit technology are prime Investor Valuation & Capital appreciation key (de-risk investment, create barriers to entry, develop IP assets) Mostly a pre-requisite Impact of IP on Obtaining Research Funding Institution (Uni or College) Varies widely with Institution and PI Different for Basic Research -> Commercial exploitation Often a prerequisite to take on as commercialization project Mostly fund IP filings Government Important in commercialization stage Often fund (Provisional) IP filings Industry Participation 3d party IP rights often a deterrent to due to cost, complexity, time to market Market opportunity and ability to exploit technology are prime Investor Valuation & Capital appreciation key (de-risk investment, create barriers to entry, develop IP assets) Mostly a pre-requisite

IP Impact on Funding - Perspectives from the Field Castel Survey: IP Impact on Research Academic Generally preferred to have IP (to $ supplement salary) but often with limited means to commercially exploit it. Time sensitive: Shelf-life of technology is ~3 years Royalty stream reduces cost of research (lowers overhead) Obligation to make a disclosure can be deal breaker Industry Mostly a barrier to collaboration due to future cost, complexity, time to market, publication requirement, etc. SME create IP for competitive advantage, to build beach head (niche), R&D cost recovery, capital appreciation. Large Corp more likely to acquire IP as needed than to create it. IP mining occurs. Discourages communication w/ PI Investor Qs: Technology, Customer, Pain, How Make $, Competition, Risk (IP), Team, $ Needed & Use, Time, Exit Mostly a requirement for funding Survey: IP Impact on Research Academic Generally preferred to have IP (to $ supplement salary) but often with limited means to commercially exploit it. Time sensitive: Shelf-life of technology is ~3 years Royalty stream reduces cost of research (lowers overhead) Obligation to make a disclosure can be deal breaker Industry Mostly a barrier to collaboration due to future cost, complexity, time to market, publication requirement, etc. SME create IP for competitive advantage, to build beach head (niche), R&D cost recovery, capital appreciation. Large Corp more likely to acquire IP as needed than to create it. IP mining occurs. Discourages communication w/ PI Investor Qs: Technology, Customer, Pain, How Make $, Competition, Risk (IP), Team, $ Needed & Use, Time, Exit Mostly a requirement for funding