KEY PERFORMANCE INDICATORS (KPI) TO FOSTER START-UP ... · KEY PERFORMANCE INDICATORS (KPI) TO FOSTER START-UP GENERATION WITHIN AN INNOVATION ECO-SYSTEM Jean-Charles GUIBERT Director

KEY PERFORMANCE INDICATORS (KPI)

TO FOSTER START-UP GENERATION WITHIN AN

INNOVATION ECO-SYSTEM

Jean-Charles GUIBERTDirector of Technology Transfer - CEADirector, Minatec

9 MAI 2016 | PAGE 1CEA | 10 AVRIL 2012

27th may 2016

9 MAI 2016

New challenges for the French research strategy :

- restore the competitiveness of the French economy : • in high-technology sectors (in strong sectors such as aerospace, transportation, space,

nuclear ...) and new sectors such as ICT, software, biotech…• but also traditional sectors (like food industry, luxury industry, tourism ...)

- meet environmental and societal challenges : • energetic transition• natural resource management• aging populations• …

Evolution of the weight of industry in the economy: 22% to 10% between 1970 and 2011

Context in France

Knowledge transfer to businesses is at the heart of the innovation capacity of a country

OECD puts knowledge transfer between research actors and companies at the center of national innovation systems.

OECD Reviews of innovation Policy : France 2014 – P18

Business creation is a key element of innovation.France has many strengths, but the development is still low

Company creation or entrepreneurship play a fundamental role in the productive dynamics of modern economies.

In France : Over the past 15 years, important effort for simplification for starting businesses with a strong public support (including tax advantages…) Strong entrepreneurial dynamics : France shows a good

dynamic, as Germany or the USA, though she was positioned among the latest countries late 1990s.

but a great weakness persists : an inability to grow these innovative companies, highlighted by all the studies conducted on business creation in France

Brakes to the growth of innovative businesses (according to the OECD)- Often, a niche positioning - Often, a scientific logic privileged instead of an economical approach- A regulatory framework that does not support growth (threshold effect)

CEA : A leading position in technological researchto support the emergence of an industrial chain and businesses

First research organization in the world in terms of

patents filings

First research organization for partnership in France

A historic role in businesses and industrial

jewels creation

• 753 patent filings in 2015

• ≈ 5800 patent families in force on 31th déc, 2015

4th in the ranking of the INPI, 201576th in the ranking of the USPTO, 2015 (IFI claims)33rd in the ranking of the OEB, 201543rd in the ranking of the PCT, 2015

• 885 M€ external revenues in 2015

• ≈ 50% from industry

• Areva, STMicroélectronics, SOITEC, Sofradir Ulis…

• 124 technological start-ups created since 2000

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The World's Most Innovative Research Institutions

CEA is topping the list of Research Institutions WW (Reuters)

1 - CEA Score : 206 France2 - Fraunhofer Society Score: 202 Germany3 - Japan Science & Technology Agency Score: 201 Japan4 - U.S. Department of Health & Human Services Score: 193 USA5 - National Center for Scientific Research Score: 189 France6 - Korea Institute of Science & Technology Score: 183 South Korea7 - National Institute of Advanced Industrial Science & Technology Score: 182 Japan8 - U.S. Department of Energy Score: 179 USA9 - Agency for Science, Technology & Research Score: 175 Singapore10 - French Institute of Health & Medical Research Score: 175 France11 - Helmholtz Association Score: 157 Germany12 - U.S. Department of Veterans Affairs Score: 157 USA13 – RIKEN Score: 146 Japan14 - National Research Council Canada Score: 139 Canada15 - Max Planck Society Score: 137 Germany16 - Chinese Academy of Sciences Score: 135 China17 - Pasteur Institute International Network Score: 135 France18 - National Institute for Materials Science Score: 132 Japan19 - United States Navy Score: 123 USA20 - Commonwealth Scientific & Industrial Research Organisation Score: 119 Australia21 - Spanish National Research Council Score: 114 Spain22 - Academia Sinica Score: 106 Taiwan23 - United States Army Score: 100 USA24 - National Aeronautics and Space Administration Score: 99 USA25 - Russian Academy of Sciences Score: 98 Russia

Business creation at CEAContext and objectives

One of the CEA missionsis to transfer

its technologies to industries ...

This action should resultin the creation of

wealth and / or national employment

2 mains schemes of TT : - an existing company- a company to create

(start-up creation)

One of the KIP of the agreement with the state: "Number of companies created from technologies developed by CEA"

Target : 25 start-ups created in 4 years (2010-2013)* 6 / 7 companies created each year

The next agreement (2016-2019) is currently under discussion.

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Steps in creation and development of start-ups at CEA

Projects detected at the earliest stage by the Technology Transfer Offices of CEA and supported by a devoted structure with a proven process.

Specific process to support business creation at the CEA : ( cf. NIG 575)- support for wages during the incubation period (3 X 6 mois max) - personal loans of up to 40 000 €- possibility to return to CEA within 4 years max…

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Incubation9-18 months

Création - starting phase12 – 36 months

Maturation6-24 months

IDEA START-UPPROJECT

Decision-making committee : "INCUBATION"

Decision-making committee : "CREATION"

…and external business partnersassociated with the process :

StrategicMarketing

ATICreation 2013 – Funding : 38 M€ATI fund is multisectoral.

ATI expects to achieve ≈ 20 investments - including tickets between 500 K and 800 K€ / business. Strategic investments in seed funding

CEA/CEA I : 13 M€BPI : 18 M€Biomérieux : 1 M€Safran : 2 M€EDF : 4 M€

Created in 1999 under the name CEA ValorisationPrivate company with capital of €27 M - wholly-owned subsidiary of CEA..Provide seed capital for company start-ups to bring them to the market and to make them attractive to financial investors

CEA INVESTISSEMENT

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• capital of € 27 million - a 100% subsidiary of CEA, founded in 1999,• Team 5 investors in the CEA Saclay site (Ile-de-France) and Grenoble.

Operational andfinancial support,

new investors

Realisation ofcapital gains

Detection, advice / project structuringand seed funding

Start-up

spin-off of the business

Entirely devoted to financing of innovative companies linked to public research- Seed Fund ATI (CEA, BPI, EDF, Safran Biomérieux) time limited, maximum # 40M€- CEA Strategic Fund (founder's shares, specialprojects...) evergreen (ex : 40M€ in SOITEC)

Area- All highly technological themes: Microelectronics, life science, medtech, materials, software, energy, environment

Mission- Invest in a stadium that repels most investors- Finance the achievement of first steps that create value- Make the company "investable" by the VC

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CréationFoundersRound

1sr round300-500 k€

2nd round 500-3M€

3rd round 1-5 M€

4th round 10-50 M€

Challenge1st step

Incubation Committee

Techno Santé

SATT Grenoble/Saclay – IncubateursEuropean funds (KIC, …)

CEA-I stratégiqueCEA-I ATI

Corporate Venture, Europe (EIF…) …

Venture capital : EMERTEC, DEMETER, SOFINNOVA …

Business Angels

The lever "licensing agreement" is essential in the process.

Awareness Detection Maturation Incubation

Instituts

CIR (research tax credit)France : National

competitionBusiness creation

France : National competitionEmergence Other aid and tax measures to help young

companies…

R&DLicences

CEA

Structures/Public support

Funding tools - CEA

Structures/private supportFrance : World-class

competition

Support systems to the creation and development of innovative companies

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124 start-ups created since 2000

24% of our companies created between 2011 and 2015

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63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63

212

20 2430 34 36 38

46

64

7986

95106

115124

50

70

90

110

130

150

170

190

<2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Nb

de s

tart-

upAnnée de prise en compte dans les indicateurs CEA

Créations avec soutien (Année N)Créations essaimage (Année N)Nb de start-up Total (N-1)Créations < 1998Nb de start-up Total (N) depuis 2000

63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63

212

20 2430 34 36 38

46

64

7986

95106

115124

50

70

90

110

130

150

170

190

<2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Nb

de s

tart-

upAnnée de prise en compte dans les indicateurs CEA

Créations avec soutien (Année N)Créations essaimage (Année N)Nb de start-up Total (N-1)Créations < 1998Nb de start-up Total (N) depuis 2000

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START-UP OVERVIEW

Over 187 start-ups :- 52 (28%) have stopped their business , - 135 start-ups (72%) continue their business or were bought and integrated into other structures that continue to operate their businesses.

1986 - 2001700 personnes

200030 personnes

200735 personnes

1992> 1200 personnes

200480 personnes

200820 personnes

199780 personnes

200420 personnes

200715 personnes

(cooled) Infrared detectors SOI generation & production 1st foundry to offer MEMS on SOI

Proteins bioproduction Magnetoresistant semiconductors Diagnostics

Miniature OLED displays Physiological Cell-Based Assays Electronic system design

Few examples of CEA’ start-ups

200860 personnes

200950 personnes

200950 personnes

200930 personnes

200915 personnes

20095 personnes

200925 personnes

200935 personnes

200915 personnes

200915 personnes

Few examples of CEA’ start-ups

High performance processors Motion sensing & data fusion Software for SUB-32 NM lithography

Fluorescence imaging solutions for real time guided surgery

Microscopic etching on sapphire Protection systems on construction sites

Augmented reality for industry Software for Non-Destructive TestingLithium-ion battery systems

201030 personnes

201020 personnes

201010 personnes

201025 personnes

201115 personnes

201120 personnes

201210 personnes

201155 personnes

201025 personnes

Few examples of CEA’ start-ups

Organic and printed electronics Precision location technology Diagnostic kits for indoor air quality (formaldehyde)

High power Fuel Cell System Xray spectrometric imaging High-power LEDs

Multigas analysis Software for real-time applications Thermoelectric sensors and systems

201215 personnes

201215 personnes

201310 personnes

20135 personnes

20135 personnes

201315 personnes

201310 personnes

201415 personnes

201410 personnes

Few examples of CEA’ start-ups

optical MEMS microdevices Apparatus for detecting bacteria Solar power forecast

Tests measuring the DNA repair Antineoplastic drugs Blood test (pocket lab)

Integrated electronics in thread

Olfactory & Gustatory Nano Biosensors

Energy harvesting

,, 201420 personnes

201410 personnes

201410 personnes

20152 personnes

20155 personnes

20155 personnes

20155 personnes

20155 personnes

20155 personnes

Few examples of CEA’ start-ups

New digitizing technology power components made from gallium nitride on silicon

microcontrollers

Reversible fuel cell Gas sensing microdevices Software for energy management

Pain treatment device Miniature gas sensors Artificial pancreas for diabetes type 1

How to develop entrepreneurship among researchers ?

- organisés chaque 1er jeudi du mois sur le centre

- permettent d’échanger sur les différents aspects de la création d’entreprise

- invitations via la boîte mail.

promote awareness as regards entrepreneurship among researchers (promotion day for entrepreneurship, meeting with professional business creation team...)

dedicated training for entrepreneurship: business plan development, marketing training…

importance to combine different profiles / skills within the team that will create a start-up (manager, financial, commercial, ... and of course scientists)

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key factors of success

Develop a comprehensive support system since the 1st day, from the idea / the project, up to financing rounds. The aid may include support to find public funding to leverage.

Agree to license its IP exclusively in a specified area, often in return for a minimum of R & D partnership.

CEA is a founding member of the company, on clear and ethical rules, ROI being addressed directly to the laboratory "parent" of the technology.

Being able to go to the "proof of concept stage" and even prototyping in its laboratories

Team: presence of holders attached to CEA’s values and with a real ambition.

Fews examples of KPI (Key performance indicators)

Overall investment grade rating (from RTO, State …) before creation of the start-up – (With use of a discount rate that corresponds to the cost of capital).

Number of start-up created over a period of time

Share in the equity capital of a company

Number of employees in start-ups

Mortality and casualty rates on societies

Turn over – including business figure in the international market

Acquiring rate of start-up, redemption rates and age of the start-up

Total amount of investors fund raised…

9 MAI 2016 | PAGE 21Direction de la Valorisation

Thank you for your attention