Managing the Spin Outs Once they have the money

But Ken Snowden, Scottish Enterprise’s biotechnology director, said Scotland’s life sciences sector had enjoyed a 7.5% rise in jobs over the past year. He said: "The industry has more than doubled over the past five years. There was a flattening of the curve last year. Companies are not growing as rapidly as they were, but they are growing more than the European average of a 10% decline."

Managing The Spin-Out company

Startopoly

how are the uni spin-outs progressing, what are the problems with the spin- outs, should the unis be taking a different approach to spin- outs/start-ups, how to manage the companies (Keith) once they have the money (again what are the common problems and how to prevent them)

Startopoly Getting a company started from University to Nasdaq…. THE COMPANY VIEW Note.. Using the US rules and board…

Startopoly Getting started Requires more than a compound active on the enzyme/receptor of choice… There must be something to support the business as it starts and as it grows…

Startopoly Keeping focus.. A university start up can not guarantee the full- time commitment of the key people while on seed funding.. Clear goals and milestones are essential Getting business development assistance can be crucial

Keeping Focus Need to find ways to keep support for nascent companies within the University system – sometimes this is not a natural synergy Need to find affordable location – remember competing with San Fransisco not Birmingham… Need International focus

Startopoly IP is great but the costs rise as time progresses, not necessarily best for a start up to be saddled with a huge portfolio…

Startopoly Grants can be wonderful.. But there do seem to be more people employed as consultants to assist/assess than there is money in the system.. Lets have a simple and fast way to support the business! One page per £25,000 in application….

Startopoly Once you start there is no stopping.. Time is always in short supply before the next milestone… Make sure the next step is ready to go and does not have a six month lead time…

Startopoly Keeping up with the paperwork is essential!

Startopoly The first Round Proper Getting to the next round requires success and a big slice of luck While platform technology is still an ugly concept for some, it does help to pay the rent….

Cost of Capital Current models are not working Secondary investors are not prepared for reasonable valuations Primary investors are seeing too much dilution Alternative financing models are essential if the technology is going to be developed

Startopoly Service business is a good route to developing a cash flow and supporting internal development But if there is a larger goal it can be a distraction.. Getting the balance right is a big issue

Startopoly A second round requires sights set on compounds/proteins which are heading to the clinic But are the big pharma companies starting to see the value in very high quality novel leads?

Startopoly Getting out on the road is essential Can’t spend the money until the well is dry and then seek another round, it is a continuous process of building the railroad

Startopoly Keeping Moving Having a portfolio approach of technologies or products or a mixture of technologies and products gives the best chance of intermediate deal making

Startopoly One shot products have a chance of failing which is high.. Is the current trend towards “the clinic or bust” the right one for most start ups?

Startopoly Getting a product to phase 1 or at least something in vivo and toxicology so that results in man are not far away gives best chance of further funding by any route…

Startopoly Some things you don’t need to worry about….

Startopoly Being prepared for “windows of opportunity” is essential.. Moods change very quickly in the financial markets

Startopoly Sell a product in phase 2 or beyond and prepare for retirement! Do it twice and go for an IPO….