Incubation of life science projects at the LSI BioVaria 2017 Munich, May 22 23 Dr. Frank Striggow Chief Operating Officer (COO)
LSI/PI corporate and financing structure Investors and shareholders: Project funding: LSI Bonn, caesar since 2009 Management, R&D, Transfer, co-financing option by LSI Pre-Seed Fund post incubation Project funding: Project funding: LSI Saxony, Dresden since 2013 Management, R&D, Transfer Photonik Inkubator, Göttingen since 2014 Management, R&D, Transfer
Technology transfer in the life science sector Challenges and chances global markets, global competition high demand on innovation (aging population, age-dependent diseases, growing healthcare market) in case of market success, large scale revenues and profit margins possible!! long development times, time to market critical high capital needs enormous risks to fail Valley of Death (lack of money/investors) Scientists are usually NOT focused on commercial applications of their research lack of transferfocused projects and people
LSI our mission to bridge/finance the gap between academia and commercialization/business formation IMPORTANT: We finance R&D projects BEFORE a company/business is established (incubation) goal: spin-off immediately after successful incubation, based on appropriate follow-on financing Academia Pre-Market R&D commercialization Basic Res Applied Res Preclin Dev Clin Dev Market approval Market entry Revenue/ Profit Acad Res funding GO-BIO, EXIST, LSI VIP+ HTGF, VC, strategic alliances/co-dev Spin-off
LSI technology fields of interest Certainly, Life Sci, Med Tech, Biotech incl. over cross technologies, e.g. Material Sci, Nanotech, Microelectronics Life Sci Med Tech Biotech Material Sci Nanotech/ Microelectronics
LSI our offer unique incubation concept in Germany Evaluation 100% Project Financing Project Management Team Development Project Transfer LSI-internal external experts Optimisation of concept Personnel costs Infrastructure Equipment Consumables 3rd party contracts IP costs continuous marketoriented industry standards Audit Leadership Building up Skills and Competence Organisation Processes Financing
LSI our offer (2) Incubation concept, unique in Germany Evaluation Project Financing Project Management Team Development Project Transfer before incubation: intense project and team evaluation/due Diligence ( technology, business case, IP + FTO, team audit) verification and specification of business model, R&D plan, IP strategy and financing need Incubation at LSI: up to 3 years max. 1.5 2 m project funding by the states of NRW, Saxony or BMBF incl. personnel costs, infrastructure (lab, office, equipment), consumables, third-party contracts contract of employment with LSI according TV-L/TVÖD continuous support by LSI team/infrastructure/network personal project manager, project meetings bi-weekly and upon request Internal/external support regarding R&D, team development, IP, legal affairs, set-up of business plan, business/corporate development, spin-off, marketing, financing co-investment option by LSI pre-seed fund post incubation
LSI what we are looking for (via scouting and evaluation) scientific and technological excellence the right people (!!!) sophisticated team leader and team with entrepreneurial spirit serious willingness and ability to focus on product development and commercialization plausible product and business idea corresponding project plan valid business case (not a complete business plan) market need/size/entry barriers time lines until market entry/break-even/exit total financing volume LSI is continuously seeking highly motivated scientists and teams providing scientific excellence and entrepreneurial spirit. In particular, we are looking for ambitious personalities who are interested and willing to transfer validated scientific projects into innovative commercial applications.
Steps to project funding A B C D E F G Submission of project concept/idea Initial presentation at LSI project shaping, submission of documents Due Diligence Presentation to LSI investment committee and sponsor Grant Application to and Approval by sponsor Signing of contracts, Start of Incubation Total time line: 9-12 months
Incubation at the LSI conditions existing IP by project group and/or academic home institution(s) NO precondition for incubation FTO must be given or achievable (e.g. via in-license contract) in case of prior IP: LSI requires a R&D license for the time of project incubation + option on exclusive license granted to spin-off post incubation new IP generated during incubation filed and owned by LSI adequate inventor s remuneration according to Gesetz über Arbeitnehmererfindungen (ArbnErfG) in case of spin-off/commercialization after incubation: exclusive license granted to spin-off positive decision by LSI investment committee Project funding by local state or federal institutions Signing of incubation and job contracts according to incubation contract, in case of spin-off post incubation: minimum no. of shares hold by LSI: 15% for first year of incubation + 0.8% for each further month of incubation, max. 3 years) maximum no. of shares hold by LSI: 34.2% (3 years of incubation)
Incubation at LSI/LSI Saxony number of projects and outcome LSI Bonn: 6 projects finished 3 exits + 1 project currently in transfer, 2 failures, 2 projects currently in incubation, 2 projects starting June/July 1, 2017 LSI Saxony: 2 projects started in 2013 1 failure, 1 project in transfer, 2 projects currently in incubation, further projects in evaluation CNS-specific drug delivery technology Financing partners: Wellington, LSI Pre-Seed-Fonds, business angels A round: 2.7 m, pre-money evaluation >5 m B round: 3.15 m, pre-money evaluation >7.7 m Small fiber matrix stimulation for chronic and acute pain treatment Financing partners: HTGF, LSI Pre-Seed-Fonds, business angels A round: 3.4 m B round: NRW.Bank, business angel: 2.5 m Biomarkers for early diagnosis of bladder and prostata cancer Financing partners: HTGF, LSI Pre-Seed-Fonds, TTHU GmbH/Univ Düsseldorf, business angels seed round: 0.6 m
Contacts LSI is continuously seeking highly motivated scientists and teams providing scientific excellence and entrepreneurial spirit. In particular, we are looking for ambitious personalities who are interested and willing to transfer validated scientific projects into innovative commercial applications. Life Science Inkubator GmbH Ludwig-Erhard-Allee 2 D-53175 Bonn Germany www.life-science-inkubator.de Dr. Jörg Fregien Chief Executive Officer 0228 / 227790 0 fregien@life-science-inkubator.de Dr. Frank Striggow Chief Operating Officer 0228 / 227790 33 striggow@life-science-inkubator.de