PAXIS Workshop Salamanca, 23 June 2005

2 INDEX CDTI Overview CDTI Overview NEOTEC Mission and phases/instruments NEOTEC Mission and phases/instruments NEOTEC Evaluation methodology NEOTEC Evaluation methodology NEOTEC Results from NEOTEC Results from

3 CDTI Presentation – Established – Public business organization of the Spanish Ministry of Industry, Tourism and Trade. – Mission: to help raise the technological level of the Spanish enterprises by: Financing R&D projects. Managing and fostering the participation of Spanish enterprises in international cooperation technology programmes. Supporting technology transfer within the industrial sector.

4 CDTI´s Operational Framework  INTERNATIONAL: Manage international technology cooperation programmes and support technology transfer M€ managed for R&D&I in M€ of raised capital for R&D&I in 2005  DOMESTIC: Manage, evaluate and finance R&D&I business projects, foster the creation and consolidation of technology based enterprises.

5 Initiative NEOTEC : Mission Initiative NEOTEC : Mission “To develop a real and virtual infrastructure (network) to facilitate the generation and consolidation of new technology based firms (NTBFs) mainly take-out from R&D results of Spanish Universities and R&D Centres ”

6 To training potential entrepreneurs Innovative Idea Mechanisms of generation&evaluation of technology entrepreneurial projects Training & Consultancy Loans ”seed” to set-up & develops to set-up & develops the company the company Fund of Funds (In study) Loans to Venture Capital Firms EnterpriseGeneration 1st Round investment NEOTEC Projects “enterprise creation” NEOTEC Projects “enterprise creation” Venture Capital Evaluation by Technology Rating Tool NEOTEC Virtual Community(Red Neotec) Diffusion and Promotion Services Initiative NEOTEC : Phases and Instruments Initiative NEOTEC : Phases and Instruments

7 To establish mechanisms to help researchers/technologists during the process of new technology based firms generation. To foster multidisciplinary teams. To evaluate the technological entrepreneurial idea: innovation, industrial application, market potential, team, intellectual and industrial property rights. ¤ The best teams will be trained to develop a real business plan. To foster agreements with universities, business schools, network of mentors, venture capital, business angels, to help the best potential entrepreneurs teams. ¤ Starting to sign agreements with several organizations to build the network services. Ideally all the services will be located near to the entrepreneur. During the process of building all the networked services CDTI will help all potential technological entrepreneurs by its own means. ¤ Unit CDTI-NEOTEC “Entrepreneurial Idea” Phase First Assistance (“Entrepreneurial Idea” Phase) Support to the generation of technology based projects

8 First day financing (  seed). Up to first round financing through venture capital. No interest, up to Euros loan. The entrepreneur must support at least 30% of the budget. Payment in two milestones: 1st. Milestone when signing of contract (up to 60%) and 2nd. milestone (remaining amount). Repayment : pay-back when positive cash-flow is generated. Up to 20% of this cash-flow will be established as annual quota. No financial guarantees required. THE ONLY GUARANTEE IS THE PROJECT. Commercial and technological interest will be the key elements in project assessment. Agreements with seed capital funds will be favoured to support common projects. “Enterprise creation” Phase NEOTEC Project

9 New Spanish Venture Capital Programme ( To be implemented by end of 2005). To set-up a Fund of Funds instrument through a partnership of private-public organizations ( CDTI, EIF, Big Spanish players in industry, finance, etc). To foster the investment of Spanish venture capital industry in the field of technology companies. Venture capital entities that invest in innovative technology based firms. “Venture Capital” Phase Venture Capital Company Support

10 European methodology developed by several entities of 5 countries. Modular project evaluation that enables comparisons between sectors, technologies and countries. New technology based company project data base will be created. Three evaluation levels: – Technology based company idea. – NEOTEC projects. – Companies for venture capital investment. Evaluation methodology: Technology Rating (Techrate  )

11 The Marketing module has 7 key factors : MK1 : value creation MK2 : market potential and attractiveness MK3 : market segmentation and entry strategy MK4 : competitive analysis MK5 : distribution and sales system MK6 : market communication MK7 : marketing and sales project management Evaluation criteria (Techrate  ) Marketing Module

12 The Management module has 6 key factors :The Management module has 6 key factors : MG1 : skills and competences of management teamMG1 : skills and competences of management team MG2 : networking capacitiesMG2 : networking capacities MG3 : personal motivationMG3 : personal motivation MG4 : anticipation and reaction to changeMG4 : anticipation and reaction to change MG5 : potential for international developmentMG5 : potential for international development MG6 : leadership potentialMG6 : leadership potential Evaluation criteria (Techrate  ) Management Module

13 The Technology module has 7 key factors : TE1 : technological challengeTE1 : technological challenge TE2 : competitive advantage of the technologyTE2 : competitive advantage of the technology TE3 : technological diversificationTE3 : technological diversification TE4 : R&D strategyTE4 : R&D strategy TE5 : protection of technologyTE5 : protection of technology TE6 : manufacturing capacitiesTE6 : manufacturing capacities TE7 : R&D project management Evaluation criteria (Techrate  ) Technology/Product Module

14 The Financial module has 4 key factors : FI1 : Financial capabilities and competence of the company FI2 : Financial history of the companyFI2 : Financial history of the company FI3 : Financial projectionsFI3 : Financial projections FI4 : FundingFI4 : Funding Evaluation criteria (Techrate  ) Financial Module

15 NEOTEC Network Is an open and multidisciplinary network Neotec Website for all agents interested in the generation and development of new technology based firms. Co-operation with the private and public entities related with this activities. Dissemination and promotion services ( promotion campaign, venture capital fora, company exhibitor, seminars, workshops, training courses, etc.) Experience exchange with other countries. Promotion of agreements with seed capital funds for jointly support of technology projects.

16 NEOTEC Approved Projects CDTI contribution/ Total budget NEOTEC Approved Projects CDTI contribution/ Total budget Number of projects CDTIloans 8,58 M€ 9,47 M€10,98 M€ Total budget 18,70 M€22,50 M€26,49 M€ 45,8 % 42,0 %41,4 % 45,8 % 42,0 %41,4 %

17 NEOTEC Approved Projects Type of Spin-off ( )