QBIC, the Interuniversity Venture Capital Fund Jan Cornelis Vice Rector International Policy- VUB - QBIC is a Public Liability company - Focus on academic research spin-offs of a network of universities (UGent, UA, VUB and affiliates) early seed and first follow up - Investment in a broad range of technologies: life sciences and biotechnology, ICT & engineering, materials & clean tech - Seeking an investor syndicate that is balanced and mixed public/private - Target investment per spin-off: between 500k and 4.0M - Size of the fund: ~ 30M/ 40M (open for new investors) http://qbic.be/ - Main shareholders: mix of private and public shareholders and universities - Business accelerator operating in symbiosis with university s IRF 1
Technology Transfer Interface From idea to initial To Gateway between the university s research & expertise and industrial partners For VUB, TTI remains the single entry point to prepare your dossier for QBIC fund 3 QBIC, the solution of a well-known problem the valley of death? Industrial Proof of Concept Commercial Proof of Concept Incorporation Startup Early Penetration Growth 50-500K Internal Sources?? 2-5M Venture Capital FUNDING GAP 4 2
Bridging the funding gap GAP provided by university and QBIC Incorporation Proof of Concept Startup Early Penetration Growth Pre-seed Seed Startup 1 st Round 2 nd Round - Prototyping - Early team in place - Business Plan - Product dev. - Team in place - Early customers University funding Mechanisms Industrial Fund (IRF) QBIC Fund Venture Capital 5 QBIC Fund: Decision process - Fund management; - Due diligence and Contract negotiation - Business accelerator - Advice to BoD for specific spin offs and Business accelerator Go/No Go for individual spin offs Fund portfolio and global strategy QBIC Venture partners management company (QVP) QBIC Investment committee (IC) QBIC Board of Directors (BoD) Spin off incorporation 6 3
Bridging the funding gap GAP provided by university and QBIC Incorporation Proof of Concept Startup Early Penetration Growth Pre-seed - Prototyping - Early team in place - Business Plan Seed - Product dev. - Team in place - Early customers Startup 1 st Round 2 nd Round University funding Mechanisms Industrial Fund (IRF) Business accelerator QSTART QBIC Fund!!!!!!!!!!!!! Venture Capital 7 QSTART Business Accelerator concept Qbic Deal flow Deal flow analysis Due diligence & Contract negotiation Portfolio company Business Accelerator Business case evaluation High level Detailed IRF funded incubation University s incubation project incorporation 8 4
QSTART Business Accelerator Three phases Phase 1 Phase 2 Phase 3 Spin-off Business case evaluation High level Detailed 10k 25k 200k 33% 75% >90% Spin-off Business Accelerator QBIC Fund Loan 9 QSTART Business Accelerator Three phases Business Accelerator LC PLC Business case evaluation High level Detailed All IRF projects + immature projects 25k 200k QVP decision IC advice BoD decision for the: loan IC advice BoD decision to invest: 10 5
QBIC Fund (VUB-UGENT-UA): Highlights First joint university VC fund in Brussels/Flanders Covering 56% of academic research capacity in Flanders (VLIR 2009: KuLeuven = 40%, UHasselt = 4%) Cross-institutional approach increases critical mass & potential for high quality ventures Focus on High Tech spin-offs from VUB, UGent, UA Deal flow enlarged through collaboration with Flemish Strategic Centers (SRC s- IMEC VIB IBBT), University Hospitals, Selection of Hogescholen Other partners (public & private): Banks, Government (Federal, Brussels, Flanders), International investors 14 QBIC Fund: Highlights (continued) Closed end fund Start date fund: June 1st, 2012 Investment Period: 5 years (optionally 6 years) Duration of fund: 10 years (optionally 12 years) Managed independently by a core team of professional investment fund managers (QVP) Close cooperation with the technology transfer offices of the affiliated universities. Relying on an independent Investment Committee (IC) composed of international experts 15 6
QBIC Fund: Objectives Target to invest in about 20 startups over the 5-year Investment Period Follow up funding 60 % -70 % of the fund Target IRR: 7 % Deal flow: spin-in and spin-out startups: - spin-out model: a startup that has been molded from within the universities and for which the universities need to establish an entrepreneurial team and a company. - spin-in model: entrepreneurs that bring their venture concept to the universities in search for technological inputs and know how that is essential to the success of their venture. 16 Deal Flow by sector all deals active deals 17 7
Deal Flow by university or partner all deals active deals 18 QBIC - Fund Structure Universities (UGent, VUB, UA) 3,95 M Banks (Fortis, KBC en ING) and Federal Participation & Investment company 14 M ARKimedes II fund QBIC Feeder Fonds 18 Mi GIMB 12M 12M 0,5M 0,5M 3,5M QBIC ARKIV Fund 24 Mi 0.5M QBIC BRU Fund 1 Mi University startups based in Flanders QBIC Business Accelerator University startups based in Brussels 19 8
Main challenge creating a Culture of inventions and entrepreneurial spirit Get involved 20 9