NTNU in a new role – what does the VC community in Norway expect Oddvar Aaserud, CEO Venturos Venture AS

Background Venturos Group established after the 50/50 split of MosvoldFarsund (MF) between the Mikalsen and the Glastad families MF’s history includes Norsk Data (founding investor ’68), Hafslund Nycomed (now Amersham), and Tandberg Teknoinvest (Management) the venture arm of MF. Invested in more than 100 companies mainly in Norway and in the US. MF founding investor in Ciena, Corvis, working relationship with international VCs. Strong international network of industrial experts

The roles of the Venture Capitalist The VCs brings capital, competence and an international network as a long term active owner. High risk business, only a few investments will be real successes. But the ROI for the investors has been high historically The VC can only invest in ideas with a high growth potential

The goal for all VC investments is the EXIT The VC returns the money to the investors after 3-10 years Successes benefit all; The investor made a profit, the founder have established a sustainable business. The VC may establish a new fund and help new companies ”Any idiot can invest in a company, but it takes an expert to exit”

Exits in Europe

NTNU and the VCs in Norway Trade sale the most important road to exit for the next 2-5 years Unique and protected technology with a global potential the best basis for a trade sale NTNU and SINTEF by far the most important R&D institutions in Norway The VCs in Norway want to establish partnerships with NTNU The best way for NTNU to realize the potential upside of the R&D results is through networks and competition The goal must be the number of successes, not the number of patents or companies

NTNU in a new role - must make innovation and entrepeneurship a real part of its strategy and operational targets - (potential for) commercialization an integrated part of all R&D avtivities (pro- active measures) - focus on the best ideas (not # but $) and identify the best partner for each idea, avoid monopolies - be aware of the risk involved in selling IPR - this might represent a significant economic upside for NTNU

Recipe for success – the VCs experience Negotiate directly with the owner of the technology Get the ownership of the IPR, not just the right to use (trade with partners,..... ) Access to the R&D resources behind the IPR (R&D contracts, new patents... )

Recommendations All IPR in a 100% controlled ”AS” (armlength to the bureaucracy, isolate risk) Employ a minimum staff in this unit (outsource non- core activities, by from the best) Get funding (FORNY etc) to have buying power (money talks) Be present on the campus (pro-active, symbol) Involve and mobilize the international network of the NTNU staff (not a regional player) Why not take the best from the universities with success?

Final remarks Never forget that the real success is the success of the companies The VCs have money and experience – you have the ideas and the guts We are here for you: