Investment seed & start-up funds as a catalyst for economic development & diversity Paul Field Technology Transfer Manager

Qatar Foundation Founded in 1995 by His Highness the Emir Sheikh Hamad bin Khalifa Al-Thani Chaired by Her Highness Sheikha Mozah bint Nasser Al-Missned An independent, nonprofit organisation committed to the development of Qatar and its people

Qatar Science & Technology Park Home for international technology companies Incubator of start-up businesses Education City Al Shaqab stud, ‘08 QF Housing Hotel, ‘10 Commercial centre, ‘10 Golf course, ‘10 Sports centre, ‘10 QF HQ Schools Qatar Academy Bridge program The Learning Centre Virginia Commonwealth University Qatar Graphic, fashion and Interior Design Weill Cornell Medical College in Qatar Medical school Texas A&M University at Qatar Engineering (4 streams) Carnegie Mellon Qatar Computer science Business Georgetown University in Qatar Foreign service Convention centre, ‘10 Sidra Medical and Research Centre, ’10 Treatment, teaching and research

Qatar’s R&D Growth 2.8% of Qatar’s GDP to R&D activity Education City Universities SIDRA medical and research endowment c.US$7bn QNRF Overseas attraction to first class organisations’ into region

Emerging Technology Centre 12,000m 2 over 2 levels + podium leases from 45m 2 incubation focus cafes, shops, common facilities opens ‘07 Innovation & Technology Transfer Centre m 2 x 2 stories x 4 wings leases of 500 – 6000 m 2 shell office and lab space opens ‘07 Innovation & Technology Transfer Centre 2 twin of ITTC 1 opens ‘07 National Data Centre “Tier 4” data centre IT services within and beyond EC independently managed opens ‘09 Phase 1 Site of 120ha, Phase 1 is 35ha controlled access and circulation underground parking building management

Objectives Promote applied research, technology development and commercialisation in Qatar Grow and diversify Qatar’s economy through application of technology Accelerate formation and growth of start-up technology companies Create high-value employment and development opportunities, in particular for Qatar’s university graduates

QSTP Provides Accommodation, Services, Support –commercialisation programs Dedicated facilities and services for R&C Access to world-class research institutes

Economic Development Management Technology Finance Corporate Research Proof of Concept Fund Research Grand Challenge New Enterprise Fund Technology Venture Fund Mentoring EntrepreneurshipWorkforce Development Qatar IP OfficePatent System & Laws Investor Readiness Program Research Networks Support for commercialisation

Technology Transfer The process of developing practical (commercial) applications from the results of scientific research The formal transfer of rights to use and commercialise new discoveries and innovations

The funding issue in Qatar Lack of investment finance to assist in forming & developing technology related businesses Financial community looking more favourably on retail/property enterprise start ups Will not meet macro economic diversity targets

The American Funding Phases

The Equity ‘Gap’ Harder to raise US$1m than US$100m More risk - often pre-revenue more effort required - mentoring, hands-on role Often idea through a committed academic Time to liquidity - exit 5+ years Limited Seed/Start up funds in the region (Injazat, UAE)

“The Challenge for Qatar” (challenge for all !) To ‘bridge’ the ‘gap’ and to provide a sustainable source of finance for start up businesses

Adopt International Good Practice Enterprise development funds provided by public sector vehicle or a mix of public/private sector partners and match funding Pump-priming a Middle East VC industry

Private Equity required in MENA Seed/Start-up funds Purpose is to refine, develop and market test IP, prototypes or concepts Characteristics are non trading, no firm business model Objective to verify commercial viability, test route to market & build management team

Opportunity Pipeline Internationally university spin outs are an emerging success story Exponential growth in R&D leading to commercial opportunities Attraction of a growing economy Opportunities of regional significance - e.g. medical

UK Case Study 191 active funds, 26% publicly backed Over half of funds’ size is less than US$25m Average investments p.a. 5 50% specialist, 50% generalist US$320m raised for university spin out activity in % of spin outs raise external finance 7% of university spin outs have gone public or been acquired

U.S. Market US last 10 yrs US$12.6bn invested at seed stage Over 5,000 university spin outs since 1980 MIT, Stanford Organisations which have benefited overseas include; Apple Federal Express, AOL, Google

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