Lecture 17: Commercialisation Flashcards
the steps in forming a (spin-out) company
1) get an idea
2) protect the intellectual property
3) Talk to experts
4) find some management
5) write a business plan
6) raise the money
why do you want to start the enterprise P/Cs
P:
- improve health care, quality of life, environment
- assist other business & organisation
- create new employment
- make money
- rise to a challenge & to enjoy it
C:
- its hard work
- its risky (financial, career prospects, relationships)
Innovation requires
- that something NEW is brought to the market
- protect it by patenting
- innovation is typically risky, time-consuming & expensive
established technology or processes can be brought to market ___
QUICKLY
BUT
-u may have to pay for licence to use intellectual property that you don’t own or control
-competitiors may be able to copy
-success is dependent largely upon providing product or services faster/cheaper than the competition and/or with more effective promotion/ customer
what type of company?
- service company
- biotechnology company
service company:
-usually based on ‘know how’ e.g. growing & supplying stem cells
• Technology often (but not always) generic or incremental.
• Relatively low risk – low returns.
• Creates employment.
• Fast to profitability.
service company function:
- Self-funded. (eg mortgage your house!)
- Bank loan. – Interest rates? How long to repay?
- Government/local grants possible.
- Growth equity/public funding at a later stage.
- Not Venture Capital
biotechnology company:
• Based on a new transformative idea.
• OR based on existing high risk assets – something you’ve developed in
your lab?.
• Long time (>5 years) to profitability. – This could be an issue
• High risk – high returns.
• Funding reflects risk.
Venture capital
- venture companies raise money (fund) from investors & invest in new companies
- investors: wealthy individuals, banks, pension funds, insurance companies etc
