1. PAXIS Workshop, Salamanca June 23, 2005 Wales, an example of the regional infrastructure for Higher Education Global Start-ups Dr. Richard Thompson Wales Spinout Programme Finance Wales Professor David Brooksbank Dr Brychan Thomas Welsh Enterprise Institute

2. Aim To consider the Welsh infrastructure as a case study of the support required at regional level to facilitate Global Start-ups from Higher Education. To understand how the infrastructure could be optimised!

3. Welsh regional infrastructure Context: Undergoing considerable change Change led by the Welsh Assembly Government –Minister for Economic Development and Transport –National Assembly for Wales Economic Development Committee

4. Regional Support Wide ranging tiered infrastructure: UK Central Government –DTI, Research Councils etc. –(10 year science and technology plan) Wales Assembly Government (WAG) http://www.wales.gov.ukhttp://www.wales.gov.uk Wales Trade International (WTI) http://www.walestrade.comhttp://www.walestrade.com –Finance Wales (FW) http://www.financewales.co.ukhttp://www.financewales.co.uk Wales Spinout Programme (WSP) http://www.spinoutwales.co.ukhttp://www.spinoutwales.co.uk –Joint Enterprise with all 12 HEI’s –Welsh Development Agency (WDA) http://www.wda.co.ukhttp://www.wda.co.uk Knowledge Exploitation Fund (KEF) http://www.kef-wales.org.ukhttp://www.kef-wales.org.uk –Education and Learning Wales (ELWa) http://www.elwa.ac.ukhttp://www.elwa.ac.uk –Higher Education Funding Council for Wales HEED Funding (3 rd Mission)

5. Welsh Approach to HE Spinouts 1990 – 1999, only ~17 Spinouts Wales Spinout Programme 1 st five years (2000 – 2005) –95 spinouts ~25 (potential) GlobalStats (international) 80 currently trading 290 jobs Diverse range of activities –£6 million Levered in funds –£1.7 million loaned (50% all ready repaid) –17 loans fully re-paid

6. Wales Spinout Programme Objectives: “To promote and support the creation of new businesses in the context of the Higher Education Sector in Wales” “To help the new businesses to achieve their full potential”

7. Wales Spinout Programme HE only Pan Wales Programme –Co-operation between all 12 Welsh HEI’s and Finance Wales 7 Spinout Managers –Commercial people embedded in HE –Offer advice and mentoring to potential Spinouts –Work with and alongside the WILO’s

8. Wales Spinout Programme - Support Potential support for each Spinout includes: –Spinout managers support to develop a business plan and mentoring for 12 months –Unsecured loans of up to £25,000 (3 years, with support) –Marketing and consultancy support –Facilities and space in the HEI –Development training (Sales etc) Help then to achieve their potential (signposting/monitoring)

9. Model of Public Funded Business Support PolicyFunds Business Support Organisations Programmes/Initiatives Business Support Mechanisms Global Start-ups GOVERNMENT

10. Consultative Approach to Business Support “Top down approach” “Bottom up requirement” ProvisionGaps Feedback requirements Request response Feedback loop

11. GlobalStart – regional support Comprehensive report prepared on the Welsh Regional Infrastructure –Literature review and background research –Preparation of support matrix and checklist for other regions Overview presented –Case study interviews (ongoing)

12. Areas of Support Refining and protecting the idea Business planning Market research, consultancy, finding Premises Start-up Finance Training / business skills / mentoring / marketing Technology (R&D) Internationalisation (Global), exporting, online sales, trade fares

13. Case Studies 20 Spinout companies short listed International (or international/global potential) First examples: –Case Study 1: Geo Info company –Case Study 2: Pet Care company –Case Study 3: Under Grad company –Case Study 4: specialised Testing company (Data for individual companies will remain anonymous)

14. External Support Links to Predictive Solutions Predictive Solutions Ltd. Professional Bodies: Robotics Institute, Society for Biomolecular Screening Industry Bodies: Innomedica, IBC Life Science, HTS Industry Group: Aberystwyth Qualitative Biology and Quantitative Analytical Biotechnology Group Universities: University of Wales, Aberystwyth, UMIST Government Department: DTI Bio Wise Spinout Programmes: Aberystwyth Challenge Fund, Wales Spinout Programme

15. Case Study Examples Support Matrix Case StudiesSupport Challenge Fund Spinout Programme Local University Venture Capital Company 1√√√ Company 2√√ Company 3√ Company 4√ Company 5√ Company 6√√ Company 7√√

16. Business Support Organisations in Wales Private Consultant Chamber of Commerce Welsh Development Agency Local Authority Business Eye Enterprise Agency (CAVE, Business in Focus) CETW/CCETS Universities Further Education Colleges Other

17. Business Support Mechanisms Information services Business advice Short courses In-house training courses Business support Financial support Marketing advice Sales support Mentoring Technical support

18. Business Support Information Resource for Wales Type of SupportNumber of Providers 1.Business Advice13 2.Business Clubs and Forums35 3.Business Support Organisations26 4.Education: Universities and Schemes28 5.Entrepreneur Schemes21 6.Finance Sector17 7.Government Bodies16 8.Information Sources13 9.Patents and Intellectual Property 8 10.Technology Sector16 Source: Business Eye (2004)

19. Tentative GlobalStart Support Matrix for Wales Business Support provision Categories/Business Support providers (examples) Contact point Information resource Net- working Business support Business Forum Business Club Business Training Business Scheme Financial support and management No 1. Business Advice11-------2 2. Business Clubs and Forums --65122---25 3. Business Support Organisations ---17---- 4. Education: Universities and Schemes ---1--3--4 5. Entrepreneur Schemes -3-2---128 6. Finance Sector--------33 7. Government Bodies-1-------1 8. Information Sources-5-------5 9. Patents and Intellectual Property ---1-----1 10. Technology Sector-4-1----16 No11462712231672

20. INTERACTION 12 HEIs BEST PRACTICE WALES SPINOUT PROGRAMME R&DKnowledgePPOC (HEI/TTO) (WDA) IP HEI IDEAS G2E IPTest idea -commercial? International COMPANY KEF ScholarshipSPINOUT MANAGERS (HEI & FW) Market?Market Research & Consultancy Business Plan (Seed funds) HEI/WSP Kick-out? Hot deskViable Business Plan Inc. WSP Office Properties HEI/WSP Grant AIG (WAG) SMART (WDA) Finance Funding Loan (unsecured/ interest free) Equity FW – Angels (WDA) - Feeder Fund Support Mentoring(WSP) Business Training WTI (WAG) WSP Other ELWA LA Start-upBankEnterprise Agency Technium (WDA) Further FundingVC (FW) Tax Private Sector (WDA) UK -NESTA Business Support (WAG) GROWTH Technium 2- DTI - SFLG High Growth Private Mapping the Welsh Regional Infrastructure -Regional/team approach -Long term (8 years +)

21. Ongoing work: Complete case studies –Analyse results –Feed into infrastructure Refine our understanding of the support mechanisms –Generic information for other regions Provide comprehensive information resource Refine Globalstart support matrix Review availability/potential availability of support