FPTT David Cox, CEO June 2 nd, 2008. 2004 2006 Industry Liaison Office Deal Generator, Venture Prize TEC Edmonton: The Genesis.

FPTTFPTT

David Cox, CEO June 2nd, 2008

2004

2006Industry Liaison

Office

Deal Generator, Venture Prize

TEC Edmonton: The Genesis

TEC Edmonton: The Genesis

2008

TEC Edmonton Programs

TEC Edmonton Programs

‘Organizations 101’

First make sure you are doing the right things….

(Effectiveness)

(Efficiency)

And then try to do them right…

Doing the right things:Understand your reason for existence

• The core purpose of the JV is to capture more of the value of R&D occurring in the region, for the region

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 region

This is a significant departure from normal practice

Doing the right things

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

• Intellectual Capital– Deal flow

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

Doing the right things

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

• Intellectual Capital– Deal flow

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

Intellectual CapitalDeal Flow

research invention disclosure technology evaluation & market research

protection commercialization license strategy technology

Local company

Start up

‘Foreign’ Company

Sponsored Research Funding

@ UofA ($Millions)

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Cast the Net Wider:Intellectual Capital

• Now working with inventors from outside the University of Alberta – 1st time ever

• New business relationships to increase deal flow– BioAlberta (Industry association)– TR Labs (Telecomms research consortium)– Capital Health– National Institute for Nanotechnology– Alberta Research Council– The Business Link

Tech Transfer: The Results• ~100 new inventions per year

• ~ 45% are patented

• ~ 28 new licenses• About half to local co’s or start-ups

• ~ $1M/year in license revenue

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 Companies

Company Company

Triple D Tech*. Oncometabolics Inc.

Ultrasound Biotech EZSeer

Exciton Technologies* Alberta Nanometals

Oral Dairy Vaccine MRDC Metabolomics

i-LOC UKALTA Wireless

Pink Army*

New Start-up Companies

Company Company

Triple D Tech*. Oncometabolics Inc.

Ultrasound Biotech EZSeer

Exciton Technologies* Alberta Nanometals

Oral Dairy Vaccine MRDC Metabolomics

i-LOC UKALTA Wireless

Pink Army*

* Not UofA spinoffs

New Start-up Companies

Company Company

Triple D Tech*. Oncometabolics Inc.*

Ultrasound Biotech EZSeer*

Exciton Technologies* Alberta Nanometals*

Oral Dairy Vaccine MRDC Metabolomics

i-LOC* UKALTA Wireless*

Pink Army

TEC Edmonton takes an equity Position in all portfolio companies

* Incorporated

Human Capital:1. Beefing up the Company Development team

• New CEO is former public company CEO• New Vice-President Finance & Admin is ex-

EPCOR• Vice-President Company Development

successful woman entrepreneur• 4 Market/financial analysts• In-house legal counsel (QC)• Deal Generator run by experienced serial

entrepreneur• ‘TECSource’ run by former banker• 35 staff in total

Human Capital:2. Executives for our start-ups

• Executives-in-Residence are key to our success– Randy Yatscoff– Robert Murakami– Shaheel Hooda– Cameron Shuler

• Network of mentors/consultants• Search firm retained to source CEOs for our

portfolio companies

Cast the Net Wider:Facilities

• Give our start-ups a home– TEC Centre

• Nourish them– Company Development services

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

Cast the Net Wider:Facilities

• We moved off campus in December 2007• Occupy entire 4th floor of prestigious

Enterprise Square • $90M redevelopment of former HBC

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

• TEC Edmonton and 21 commercial tenants

Enterprise Square

Financial Capital:Prepare them, polish them, present them

• Groundbreaking new AHFMR grant• Unique Funding Agency Consortium • Deal Generator • VenturePrize

– $200,000 in prizes each year• First Alberta seed fund announced Q1,

2008 – UofA is a Limited Partner

Doing Things Right

• Business – savvy and experienced management team

• Sound strategic plan and business processes• Solid financial management and controls

– 2007/08 revenues ($5.2M) matched by expenditures

– Received clean first-ever audit• Contemporary governance

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

www.TECedmonton