What Industry Wants Andy Todd Telephone: +44 (0)

Creating Wealth from Innovation

R & D Sales & Marketing Project Management & Supply Chain Admin, Legal IP Management Accountancy… et al Partners, Markets Clients and Consumers Fund Raising & Equity Management Shared Service University The Ventures

Researcher Scientist (Middle Management, SME’s) Big Company Executive Big Profits Big Impact B A Well Connected Business Savvy Deal Maker A

Networked with Decision Makers Respected in Industry High Impact Deal Experience Done it Before

Questions….. 30 Seconds!

What are the odds of success?

Higher Education –Business and Community Interaction Survey Figure 4 Selected HE-BCI income streams (real terms) Source: HE-BCI Part B Tables 1b, 2, 3 and 4c

Even ‘professional’ investors make poor returns on early stage businesses

The VC’s Paradox “You want my money ‘cause you can’t sell” “Why would I want to invest in a company that can’t sell?

Base Rate Data Vs Availability Bias X’s Availability Cascade Kahneman and Tversky 1974 Why does VC Exist?

What works?.... Trade Investors Disruption Augmentation Start from Scratch

1 in 160,000 chance of financial success Traditional – Start from Scratch Ref: High Tech Start Up. John L. Nesheim ISBN X

Commercial Edge Approach Benefits…. Research at good commercial rates Zero wastage of research effort Independence from over-subscribed grant funding The opportunity to get leveraged value… Royalties and Equity At this point we’re making money + ++

16 Courtesy of Rolls-Royce Strategic Research Centre

Emergency Smoke Extraction Motors Variable Speed Drives Oil Sands Extraction Systems The Big Motor Manufacturers Wire Manufacturers Ultra Deep Oil Extraction Application Development

What Drives Success?

The Different Types of Innovation and these can be either used internally or supplied as propositions to customers

Hurdles to Innovation

So where can we help? ? ?

Marketer Dealer Portfolioist Optimiser Speculator Proactive Reactive Undifferentiated Differentiated Architect

Year 1Year 3Year 5Year 10Year 15Year 20Year 25Year 30Year Best Average Worst Annualised Return % True High Growth Companies

1. Structured and Disciplined Sales 2. Disruptive Solution 3. Breakthrough Account 4. Top 5%ile Margin 5. B2B 6. Market > £500m 7. Global Plan 8. 1 or 2 in It’s Sector 9. Founded on Profitable Deal Characteristics of High Growth Businesses

Andy Todd Telephone: +44 (0)