1. What Industry Wants www.teci.co.uk Andy Todd andy.todd@tcei.co.uk Telephone: +44 (0)7785 394220

2. Creating Wealth from Innovation

3. 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

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

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

6. Questions….. 30 Seconds!

7. What are the odds of success?

8. Higher Education –Business and Community Interaction Survey Figure 4 Selected HE-BCI income streams 2003-2008 (real terms) Source: HE-BCI 2003-2007 Part B Tables 1b, 2, 3 and 4c

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

11. 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?

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

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

14. 1 in 160,000 chance of financial success Traditional – Start from Scratch Ref: High Tech Start Up. John L. Nesheim ISBN 0-684-87170-X

15. 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. 16 Courtesy of Rolls-Royce Strategic Research Centre

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

20. What Drives Success?

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

24. Hurdles to Innovation

25. So where can we help? ? ?

26. Marketer Dealer Portfolioist Optimiser Speculator Proactive Reactive Undifferentiated Differentiated Architect

27. Year 1Year 3Year 5Year 10Year 15Year 20Year 25Year 30Year 35 96.733.522.517.616.413.514.310.88.8 7.36.05.9 6.0 5.9 -57.1-31.3-18.0-5.6-3.0-1.7-2.2-2.4-2.5 Best Average Worst 100 120 60 80 40 20 0 -20 -40 -60 -80 Annualised Return % True High Growth Companies

28. 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

29. www.teci.co.uk Andy Todd andy.todd@tcei.co.uk Telephone: +44 (0)7785 394220