12.10.2011 1 VTT Venture Oy VTT:n media-aamiainen 13.10.2011 Antti Sinisalo, CEO VTT Ventures Oy
12.10.2011 2 Role Develops spin-off companies based on VTT s technology Makes pre-seed and seed phase investments Transfers technology to spin-offs
12.10.2011 3 Key portfolio figures Portfolio of 17 high tech companies Average age of the companies 3.2 years Half of the companies are VC or angel funded Classification: A-Class: 4 companies B-Class: 6 companies C-Class: 7 companies Total revenue of the companies (FCT2011): 4.5 M VTT Ventures Ltd has sold its shares of Awanic Oy to Nordic Healthcare Group and has also made a successful exit from Aivon Oy through a management buy-out. More information: http://www.vttventures.fi/2011/06 Personnel 2011: approx. 80 Fair value of companies: 17.7 M. Ventures share 4.2 M (book value 3.4 M ) *) valuation from 31.8.2011
12.10.2011 4 Examples of portfolio companies Bio Provides a high-content gene expression analysis platform www.plexpress.fi IT Removable media data protection www.envaultcorp.com Bio Personalized medicine based on gene expression analysis database www.medisapiens.fi IT Network risk management www.vergo.fi Bio Generating biomarkers and targets for commercialization through analytical chemistry www.zorabio.com ICTE Manufactures touch modules based on FTIR technology www.tactotek.com ICTE Document and brand authentication and security www.nicanti.com ICTE Commercializes a physical activity meter and service concept www.hookietech.com Healthcare Treatment for head and neck cancer www.boneca.fi
12.10.2011 5 TactoTek Oy Touch screen technology is winning ground in multiple domains Touch panel market is estimated to be $8 billion and grows rapidly VTT Ventures recently established spinoff TactoTek utilizes FTIR technique combined with printed electronics manufacturing methods to develop and manufacture touch panels for mainstream applications
12.10.2011 6 The innovation process Plan and manage EXIT in mind BIO Idea SW Idea Screening Evaluation ITCE Idea Ideas Commercialization strategy Spin-off projects Investment Exit Printed Electronics Idea Basic Industry Idea
12.10.2011 7 The spin-off process Cases evaluated using industry networks together with potential EIRs EIR is hired Team is build A Business Plan is prepared An investment proposal is made to Ventures board The spin-off is actively developed towards growth w/ VC partners Discovery and evaluation Incubation Investment Portfolio management Exit YES / NO Return/ Discard YES / NO Return/ Discard YES / NO Return/ Discard
12.10.2011 8 The E-i-R concept E-i-R Qualifications E-i-R Engagement Domain expertise ( Been there, done that ) Multitasking Not risk averse (ambitious) Strong professional network Leadership qualities Responsible for leading an incubation project together with the researchers Responsible for producing a Business plan and an Investor pitch Building a startup founder team After a successful E-i-R project taking the lead as a startup CEO
12.10.2011 9 Screening using investment criteria ISO PoC VTT Ventures Ltd investment criteria: Commercialization projects Ideas / IPR level Externals Ideas 1. Clarity of purpose 2. Market/Growth potential 3. Sustainable competitive advantage of product, service or business model 4. Investment needed 5. Clear exit opportunity 6. Understanding of key risks
Dealflow snapshot of a 15 month period 2008-2009 12.10.2011 10
12.10.2011 11 Building the foundations 1. Validate the business proposal with Customers 2. Build a solid founding Team (EIR) 3. Engage Investors early to give input to the case 4. Verify the IPR to ensure solid foundation before investment 5. Mentor the process
12.10.2011 12 Funding options and routes to money Venture capital community - Finnish and international Business angels
12.10.2011 13 Investment policy VTT Ventures invests in companies that have VTT technology in the core of their business VTT Ventures is a minority shareholder VTT is an active owner and part of the board of directors VTT Ventures works with VC community to find Lead investors for its cases Technology transfer starts with licensing and continues as technology transfer during later rounds of financing VTT Ventures uses straight equity and convertible debt financing instruments
12.10.2011 15 VTT creates business from technology