CAUBO David Cox, CEO June 26, 2007. TEC Edmonton: The Genesis 2004 ILO Deal Gen, Venture Pz.

CAUBO David Cox, CEO

June 26, 2007

TEC Edmonton:The Genesis

2004

ILO

Deal Gen, Venture Pz

TEC Edmonton:Programs

Technology Transfer

CompanyDevelopment

VenturePrize

DealGenerator

TEC Centre

2007

What’s new about TEC Edmonton?

1. Unique Joint Venture between University and Municipality

2. Regional focus: we want to capture more value from regional R&D and keep it in the region

3. Regional hub for public and private-sector alliances

Who funds TEC Edmonton?

University of Alberta: $1M per year (min) Province: $2M over 5 years Federal Government: $2M over 5 years City of Edmonton: $5M over 5 years,

plus $7M towards Bay purchase/RTF Other agencies: AHFMR, CIHR, CTI… Private-sector sponsors: 26

‘Organizations 101’

First make sure you are doing the right things….

(Effectiveness)

(Efficiency)And then try to do them right…

Doing the right things

New joint venture changed the focus: more company creation and development

The philosophy is to capture the value of R&D occurring in the region, for the region

Doing the right things

New joint venture changed the focus: more company creation and development

The philosophy is to capture the value of R&D occurring in the region, for the region

And…Crank up the volume!

Doing the right things:Get our priorities straight

1. Transfer inventions from local researchers to local companies

2. Create new companies in the region 3. License inventions to companies

outside the regionThis is a significant departure from

normal practice

Doing the Right Things…

We have begun to ‘cast the net wider’ to increase the supply of:

Intellectual Capital Human Capital Facilities Social Capital (connections) Financial Capital

Sponsored Research Funding@ UofA ($Millions)

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Cast the Net Wider:Intellectual capital

Working with non-UofA inventors– 1st time ever in region

New business relationships to increase deal flow– BioAlberta– TR Labs– Capital Health– NINT

‘Shake the trees’ in the faculties

Technology Transfer Measures and results

Indicator FY 2005 FY 2006 FY 2007

(Target)

FY 2007

(Actual)

Reports of

invention

59 82 110 98

US Patent

applications

41 57 54 54

US Patents

issued

10 8 10 9

Spin off companies

71 active spinoffs Over 1,000 highly

skilled employees 8 publicly traded firms

– $1B market cap

86% of spinoffs are based in Alberta– 83% headquartered in

Edmonton

New start up companiesApril 2007

Company Status

Rehabtronics Inc. Established

BioLipids Inc. Established

i-LOC Inc. Incorporated

DRAXWARE Inc. Pending

Candidate start upsApril 2007

‘Company’ Status

Ultrasound Biotech Under development

EZ Seer Student entrepreneur prog.

MOJO Student entrepreneur prog.

Picomole (external) Term sheet

Oncometabolics Under development

COMPRU (external) Under development

Cast the Net Wider:Human Capital

Beefing up the Company Development team

Key ingredients– Executives-in-residence

4 in place Up to 3 more to come

– Market Analysts 2 in place, plus intern

– Commerce-savvy staff

Cast the Net Wider: Social Capital

VenturePrize 2006-07 – Province-wide business plan competition– Record-breaking year all round

Deal Generator– Now Canada’s largest Angel network – 9 forums to showcase groomed high-growth tech firms,

$10M in offers of capital

Ingenuity Enterprise: $3.6M province-wide collaboration with UTI (Calgary)

Record activities in networking and outreach events

Venture Prize deal flow indicators, cf. same time last year

Indicator May 06 May 07

# Participants 105 131

# Participants mentored 22 29

# Sponsors 21 26

Sponsor $ (private sector) 59,000 66,000

Cast the Net Wider: Social Capital

VenturePrize 2006-07 – Province-wide business plan competition– Record-breaking year all round

Deal Generator– Now Canada’s largest Angel network – 9 forums to showcase groomed high-growth tech firms,

$10M in offers of capital

Ingenuity Enterprise: $3.6M province-wide collaboration with UTI (Calgary)

Record activities in networking and outreach events

Deal Generator

Strategy Measure 06/07 Target 06/07 Actual

Increase Access to Capital for start ups

Investment $ into TEC Edmonton companies

$8MM offers

$4MM closed

$9.5MM offers

$724K closed

Cast the Net Wider: Social Capital

VenturePrize 2006-07 – Province-wide business plan competition– Record-breaking year all round

Deal Generator– Now Canada’s largest Angel network – 9 forums to showcase groomed high-growth tech firms,

$10M in offers of capital

Ingenuity Enterprise: $3.6M province-wide collaboration with UTI (Calgary)

Record activities in networking and outreach events

Ingenuity EnterpriseA program to increase entrepreneurship in Alberta

$3.6M program now underway– EIRs, Student Entrepreneurship & business plan

competition, outreach, graduate innovation Funded by Alberta Ingenuity Planned, managed and executed jointly with

UTI (Calgary) Management Board in place

– Includes 3 external expert members

Cast the Net Wider: Social Capital

VenturePrize 2006-07 – Province-wide business plan competition– Record-breaking year all round

Deal Generator– Now Canada’s largest Angel network – 9 forums to showcase groomed high-growth tech firms,

$10M in offers of capital

Ingenuity Enterprise: $3.6M province-wide collaboration with UTI (Calgary)

Record activities in networking and outreach events

TEC Edmonton connects region

CTI

AHFMR

IRAP

TRLabs

Others…

NAIT

ARC

The Business

Link

TEC Edmonton

Private Sector

TEC Edmonton is a regional hub that connects “agents” supporting innovation through referrals and collaborations.

Partnerships help make TEC work.

Cast the Net Wider:Facilities

Give our start-ups a home– Research Transition Facility, soon to be ‘TEC Centre’

Nourish them– Company Development services

Extend our reach: new alliances with:– Edmonton Research Park (ERP) & ATC– National Institute for Nanotechnology (NINT)– Northern Alberta Business Incubator (NABI)– NAIT Duncan McNeill Centre for Innovation

Cast the Net Wider: Facilities

TEC Edmonton is moving off campus Occupying entire 4th floor of Enterprise Square in

October 2007 TEC Edmonton and about 20 tenants to relocate Funding for Bay Building redevelopment:

– City of Edmonton ($7.5M)– Province of Alberta ($15M) – U of A ($49M)– Government of Canada ($15M)

Cast the Net Wider: Financial Capital - Help technology ventures access capital

Prepare them, polish them, present them– Groundbreaking new AHFMR grant

Unique Funding Agency Consortium very active Deal Generator facilitated $9.5M in financing offers VenturePrize awarded $210,000 (most ever) in

cash and in-kind development support on May 3 Seed fund

Doing Things Right

Business – savvy and experienced management team Sound strategic plan and business processes Solid financial management and controls

– 2006/07 revenues ($5.2M) matched by expenditures– First ever audit in May

Contemporary governance– Private sector – led Board– Governance based on TSX model

Members of the TEC Edmonton Board

Gary Kachanoski VP(Research), UofAAllan Scott President & CEO, EEDCDavid Cox CEO. TEC EdmontonBob Teskey Field LawNancy Harrison Former VC (Ventures West)Wayne Karpoff CTO, Yotta YottaRich Casey Former US Biotech CEOChris Lumb CEO, MicralyneBruce Johnson Former CEO Intuit CanadaDoug Maley ADM, Western

Diversification

Challenges?

Managing the interface with the stakeholder organizations

Managing a high rate of growth Supply of management expertise Managing founder’s expectations

Questions?