The Royal Academy of Engineering. Enterprise Hub. Call for proposals

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1 The Royal Academy of Engineering Enterprise Hub Call for proposals Deadline for proposals: 5 pm 1st March 2018 Please send all submissions to: 1

2 The Academy is seeking a training provider to design and deliver content for various aspects of technology entrepreneurship and innovation leadership, focusing on: o Leadership o Team o Company o Marketing and promotion o Finance o Mindfulness and well being Training modules should be practical, focusing on equipping participants with the appropriate skills to establish and lead a start-up company from inception all the way through to launch, and potentially the growth stage according to their ambitions. Introduction As the UK s national academy for engineering, we bring together the most successful and talented engineers from across the engineering sectors in a Fellowship, for a shared purpose: to advance and promote excellence in engineering. We provide analysis and policy support to promote the UK s role as a great place to do business. We take a lead on engineering education and we invest in the UK s worldclass research base to underpin innovation. We work to improve public awareness and understanding of engineering. We are a national academy with a global outlook, and we use our international partnerships to ensure that the UK benefits from international networks, expertise and investment. Enterprise Hub The Royal Academy of Engineering s Enterprise Hub is a national resource for the UK s most promising engineering entrepreneurs. The Hub forms part of the Academy s commitment to stimulate excellence, creativity and innovation in engineering. The Hub does this by making awards to exemplars of excellence and innovation in engineering who will be the founders and leaders of tomorrow s high-tech companies. The awards include provision of money-can t-buy bespoke support and one-to-one mentoring from its Fellowship, which comprises many of the country s most successful engineers from across academia and industry, including prominent entrepreneurs and business leaders. 2

3 Enterprise Hub Vision and objectives Our vision is to be a key driver of sustained economic benefit to the UK by supporting the formation of a robust ecosystem that fosters a culture of entrepreneurship, innovation and success amongst UK-based engineers. Success will be evidenced by: Engineering and technology entrepreneurs with global vision delivering successful applications of engineering and technological innovations, with associated social and societal benefits; and A society in which talented engineers are inspired to become entrepreneurs and entrepreneurial spirit is valued and celebrated. The objectives of the Hub are to: Accelerate innovation for the benefit of society by supporting founders of engineering and technology enterprises with grants, bespoke training and mentoring from Academy Fellows. Inspire and encourage business minded UK-based engineers to pursue entrepreneurial endeavours by celebrating and promoting successes. Enhance the climate for engineering and technology entrepreneurs and growth of technology enterprises in the UK. Further information about the Hub and its activities can be found here: This document outlines the Academy s requirements for providers to design and deliver training programme for Enterprise Hub Members over a 36-month period from April Continuation of the contract beyond first year will be subject to satisfactory performance. Contact details Please send all proposals clearly marked as proposal documents to Note our mailbox size limit is 15Mb so for documents over this limit submitting a download link will be required. All queries about this Call for Proposals should be directed to Angus Baker: All questions raised will be collated and answers forwarded on to all parties who have registered an interest in submitting a proposal. To register your interest contact 3

4 Statement of requirements The Enterprise Hub at the Royal Academy of Engineering is looking to procure a training provider (or consortium) to deliver a suite of training programmes for founders and co-founders (referred to as Hub Members ) of approximately 30 spin out/start-up companies a year. There will be 29 Hub members in year 1 of this contract. Hub Members receive a support package including: o up to 60K grant funding o capacity building (mentoring and training) o PR and marketing support o access to the Taylor Centre, touchdown and meeting space in Central London The training should enable them to take their innovation and turn it into a successful start-up. Content and focus is up to the proposer to determine and justify, and the below are suggestions only, in no particular order: o Leadership o Business modelling o Team o Negotiating o Company o Marketing and promotion o Finance o Mindfulness and well being All training will take place at the Academy premises in Central London, Taylor Centre, 4 Carlton House Terrace. The venue, refreshments and meals will be provided by the Academy. We expect the training to be delivered on a monthly basis, with a minimum of 2 days in a row for each session to minimise disruption and travel. Reasonable out of pocket travel and accommodation expenses of the Hub Members will be covered by the Academy, paid directly to the Hub Members. All other training related costs should be factored into the proposal. A recommended reading list/articles/blogs should be provided to ensure attendees know the basics before the course begins, as well identify further reading to build upon each sessions content. Materials should be made available to the attendees electronically. 4

5 Considerations The Hub Members have applied to the Academy with an identified innovation, and we expect them to develop a startup based upon this innovation. While they will all likely pivot to varying extents, they were selected by a panel of entrepreneurs based upon their innovation, so we believe they have passed the kill stage of kill pivot persevere. The Hub Members will have differing levels of experience of commercialisation and entrepreneurship, being either an academic (university researcher) or a recent graduate, and the training should be useful to all. You may wish to hold separate classes to account for different levels of experience. We expect the Hub members to learn from and support one another, so there should be some opportunity to interact, particularly between classes, should that method of delivery be chosen. The Hub Members will all have a technical background, but may not be in the same engineering field so the training should not be subject-specific, and examples should be drawn from a range of subject areas. Career stages will vary, with many having received expensive training already, albeit likely not directly related to commercialisation. Training should be from the perspective of establishing and running a startup, rather than generic management and leadership skills. You may wish to cover generic skills in written material or in the reading list. Hub member availability will vary, and they may wish to send a co-founder when the cannot attend. Written documentation should be available to ensure any replacement attendees can participate effectively in the training. In previous years the training programmes we have delivered have been days long. You may wish to consider if all Hub members should attend all sessions, or if some more targeted sessions should be held: Some Hub members are spinning out of universities, which will require the awardee to navigate internal processes, as well as gain approval and negotiate the resulting equity stakes of each party. Start-ups external to universities are likely to not have this issue. Many of the Hub Members technologies are in the biomedical field, which can pose a unique set of issues and timelines for a start-up. Enterprise Hub Programmes overview The Enterprise Hub runs a number of competitive programmes throughout the year, selecting up to 30 start-up/spin out companies to support. Winners, selected by the Fellows of the Academy become Hub Members, benefit from the package of support provided by the Enterprise Hub. The core aims of the various programmes are: 1. To bring engineering innovations to market for a wider public benefit 2. To improve the skills of the awardee 3. To develop role models of entrepreneurship; and 4. To develop a wider alumni network to further the aims of the Hub. 5

6 Enterprise Fellowship scheme Enterprise Fellowships provide funding and support to outstanding entrepreneurial engineering researchers working at a UK university at postdoc level or above, and to recent graduates working for a start-up to enable them to develop a business around their technological idea. Enterprise Fellows receive up to 60,000 for continued development of the innovation and associated spin-out/start-up company. Up to 30 companies are selected annually and are invited to join the Enterprise Hub. The core indicator of success is that by the end of the 12-month Fellowship we expect the Hub members to be in a position to successfully pitch for and receive investment. This programme is part funded by the European Union Regional Development Fund. Launchpad Competition The Launchpad Competition helps a budding engineering entrepreneur aged to start a new business based on their engineering innovation and maximise their chances of its successful growth. Winner receives 15,000 cash prize and is invited to become an Enterprise Hub Member. Training Modules Residential multi-day courses and day long training courses are expected to be delivered by practitioners, expert trainers and coaches covering core aspects of leadership and innovation management as set out above. The trainers will have direct experience of starting up or developing new businesses, ideally in the technology sector, as well as direct experience in coaching technology entrepreneurs. Training courses should be run monthly, preferably mid week, to better aid travel and participation. The sessions should be timed with participants in mind, who will be based throughout the UK and potentially travelling long distance. Therefore, sessions might have to be split over two days and run in the late morning early evening or over two days, to minimise travel and disruption. Training should be delivered on a group basis in a lively and friendly manner, to encourage the development of a collegiate atmosphere amongst the participants, who will have had limited prior interaction. Below is an indicative list of suggested topics that might be covered as part of the training: I. Business Modelling and Customer Markets What does your current business model look like? What is the relationship between vision, context, aspiration and your business model? Who is the primary beneficiary? Who is your paying customer? What do they want? What are they willing to pay for? Tools and techniques to innovate and validate your business model Understanding of target markets Best practice in market research and how to analyse the results Positioning yourself within your target market and pricing strategy success 6

7 II. Operations and Leadership Recognising the importance of the founding team Setting goals and motivations Team and team dynamics Personal leadership and leading others Hiring the correct staff and building a winning team Hiring key management How roles change over time, and understanding when roles outgrow the individual Importance of networks Board, its role and composition Understanding your business and bringing growth strategies to life Managing customer and supplier relationships How to best use your time as owner and an employee Allocating equity among team members III. Finance This should incorporate financing options, valuation, private and public financing, term sheets, shareholder agreements etc. The content needs to be designed to address the finance needs for technology start ups/spin outs. Most participants will not have a finance background. It would be recommended to design content for three levels of start-ups for example seed, raised and pre-launch or even beginner, intermediate and advanced. This would allow the groups to be separated according to their training needs. The course needs to include interactive elements and the use of case studies, handouts and template documents would be advised. Sources/types of finance How to develop a balance sheet Building an income statement Cash flow forecasts Day-to-day finance for start-ups/spin outs Start-up valuation Financial projections and analysis Calculating breakeven Business ratios and formulas Getting the first k, getting the next k Finance for growth (debt and equity, accounting, personal guarantees pros/cons) Alternative finance (sources of capital) Funding strategies Where to find investors, what are investors looking for? What financial statements do investors want to see? Understanding term sheets and investor documentation CEO Salary, Start-up equity for employees Exit strategies and goals 7

8 IV. Basic Marketing and Sales Strategy The marketing mix-the 4 P s (Product, pricing, place, promotion) Sales funnel Sales relationship levels Buying roles Digital marketing: Sales forecasting Branding and naming V. Intellectual Property and Regulation The topics it might cover include: How to Choose the Best Legal Structure for Your Start up/spin out Regulatory environment de-mystified What is intellectual property? Copyright and trademark Software and open source software The process of commercialising research and ensuring your innovation is protected Licensing intellectual property Making your intellectual property investment ready Negotiating and engaging with Academic institutions over IP IP Laws and ownership Protecting your IP (i.e. from Third parties) How to protect new ideas (NDAs etc.) Patent Strategy Due Diligence Advanced IP VI. Presentation and Communication Skills How to connect with and engage a listener/audience How to project confidence and make impact Exercises in presenting Bringing content to life/story telling What type of organisation might you pitch to? What support would you seek from each one? Understanding these organisations and what their drivers are What to include in your pitch? What do they need to know? What don t they need to know? VII. Negotiation What is a negotiation? Understanding different types of negotiation Sources of power in negotiation Negotiation styles and strategies Preparation strategies VIII. Mindfulness and well being What is mindfulness How to look after yourself and your employees 8

9 All training materials used during the training sessions such as PowerPoint presentation and/or other resources should be made available electronically to the Enterprise Team for sharing on members only area of the Enterprise Hub website accessible to the Enterprise Hub Members only. Success Measures and Key Performance indicators (KPIs) Training provider will be required to: Deliver training on time, to budget and in line with agreed parameters (to be agreed at the inception meeting) High degree of customisation; ensure the training courses are designed in line with the cohort requirements Ensure high level of attendance (95%-100%) at the training courses Achieve participant satisfaction of >90% with the learning outcomes of the training course Produce annual self- evaluation report Implement enhancement, taking into account feedback from participants Sessions are accurately documented and appropriately evidenced to the satisfaction of contract manager Reading list to include key resources for the founders Diagnostic of each Hub Member to be undertaken at the start and end of the programme. Procurement Schedule Deadline for the submission of proposals 1 March 2018 Review of submission by the Royal Academy of Engineering w/c 5 March 2018 Interview of the shortlisted suppliers w/c 12 March 2018 Appointment of the supplier March 2018 Inception Meeting including confirm dates of training. w/c 19 March 2018 Contract Commencement 1 April 2018 Induction Day (Hub members meet each other, staff, and 19 April 2018 key suppliers) 1 st year evaluation March 2019 Content of Proposals Please include the following in your proposal: Proposed content: Approach to customisation, outline of training sessions, high level summary of areas to be covered; details of method of delivery and anticipated learning outcomes; Schedule: proposed schedule of training courses Track record: track record to date (including consortium partners where applicable) in delivering similar training programmes in technology entrepreneurship and innovation leadership; please include CVs of individual trainers where appropriate. Cost: annual overall cost for the delivery of the programme for each of the three years, including: design, delivery, materials, travel, accommodation, and 9

10 VAT. The number of trainees may vary, so please indicate how this will affect the costs. Other: details of the consortium lead including company registration details and the latest set of Annual Accounts. An appropriate level of professional risk indemnity insurance. Where appropriate, Memorandum of Understanding (MoU) or similar to demonstrate commitment from all consortium members. References: Please provide the contact details of two references, who we will contact for input should you be invited to interview. Selection criteria In selecting the provider, we will take into account the following criteria: Proposed content: Quality and appropriateness of the proposed training sessions and delivery method (customisation of the course, learning outcomes identified and how they will be met), including any novel aspects. Track record: Track record of the trainer(s) in delivering other related training programmes. Award criteria In awarding the provider, we will take into account the following criteria: Schedule: Suggested timescale and process. Cost: Overall value for money. Appropriateness of the budget. Other: Quality of references received, suitability of the selection process for trainers. Presentation: Shortlisted candidates will be invited to the Academy for the final presentation and Question and Answer session, at which you will have the opportunity to build upon proposal. 0 No Answer/Unacceptable Response 1 Very Poor Response 2 Poor Response 3 Acceptable Response 4 Good Response 5 Excellent Response Note: to score well (i.e. 3 and above) the evaluation panel will look for clear evidence. The Scored Criteria will then be weighted to give a mark out of 100 prior to presentations. The tables below indicate the weightings which will be applied to each section of the Scored Criteria. The three highest scoring proposals will be invited to the Academy to present their proposal. Presentations will be weighted to give a mark out of 100. Scores from the presentation will be added to give the final three proposals a mark out of 200. The proposal with the highest total score will be awarded. 10

11 Selection Criteria Section: Proposed content Description of criteria Score Weighting Max Points Training content is of high quality All key training areas covered Additional services and technical assistance Total 35 Section: Track record Description of criteria Score Weighting Max Points Approach to Customisation Experience of similar service provision - Details of work previously completed for other clients Award Criteria Total 10 Section: Schedule Description of criteria Score Weighting Max Points The timescale to successfully deliver is realistic Delivery process is clear and realistic Total 20 Section: Cost Description of criteria Score Weighting Max Points Is competitively priced Has accounted for all cost to deliver proposal Expenditure broken down and pricing clear Appropriateness of the budget / expenditure Total 25 Section: Other Description of criteria Score Weighting Max Points Client References - suitability of nominated references Client References - quality of reference received back Numbers of Staff Proportionate to Services Tendered Appropriate processes and procedures for appointing trainers Total 10

12 *For those invited to presentation Section: Presentation Description of criteria Score Weighting Max Points Content Track Record Team Schedule Quality of presentation Total

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