dag finne senior business developer bergen teknologioverføring as presentation at nri-conference...
TRANSCRIPT
Dag FinneSenior Business Developer
Bergen Teknologioverføring ASwww.bergento.no
Presentation at NRI-Conference 2014, Day 2
Ways to finance innovators' relieve of present duties in the clinic
Agenda
Introduction
Case
Solution
Elements of the solution
Conclusions
CV BTO
Different interests and difficulties
BTO and the model envisaged
Agreements and associated duties
Compatibility with the expectations
CVEngineer Marine Tech, Master in Management at NTNU, BI Styrekompetanse
Established 8 startups
Experience as CEO, Chairman and Board Member in software companies
Experience from ICT industry since 1993 in development and sales
Joined BTO in April 2006 as the Senior Business Developer
Focus on ICT projects and early stage funding
Responsible for 5 startups Dag Finne
3
Bergen Teknologioverføring (BTO)
Technology transfer office (TTO) that supports 8 research institutions in commercialising
research results and handling all intellectual property aspects.
Owned by the University of Bergen, Haukeland University Hospital and the Institute of Marine
Research
Innovators
Wish to continue as academic
employees
Want a 50-50 position (can be any)
Department
Positive, but afraid of being depleted
Start-up
Needs the innovators for 12-24 months
more (based on needs, can be any)
Has limited cashBe aware of the limits of soft funding (ESA)
Case; Ways to finance innovators' relieve of present duties in the
clinic
Different interests have
to be accounted for
4
Net
ne
gativ
e C
FN
et p
osi
tive
CF
Funding DevelopmentGrants
Friends, Family, Founders
5-50k
AngelInvestors
50k-500k
EarlyStage VC
500k-2M
PE, ProjectFinancing
2M-50M
AppliedResearch
Proof of Concept
Target Market
BusinessPlan
Working Prototypes
Founding Team
EngineeringPrototypes
Supplier Contracts
VC
2M-50M
ProductionPrototypes
DistributionContracts
IPO, M&A
25M+
ProductIntroduction
Revenue Growth
Stage ofVentureDevelopment
‘Valley of death’
Source: Adopted from UCDAVIS Center for Entrepreneurship 5
Research Grants
BasicResearch
Problem formulated
How to facilitate research based innovation and optimize growth of start-ups
without compromising obligations of clinical duties
How to avoid infringement of ESA’s rules restricting public subsidies to private
entities
These are apparently conflicting obligations set by national legislation and
EU regulations (soft funding limited to 200,000 EUR)
6
University Hospital
BTO
Start-up
University Hospital
Department
Related parties
Extra Funding
Acc
ou
nts
Re
ceiv
ab
leIn
voic
e
Pa
yme
nt
Pa
yme
nt
Framework agreement
Buy-out agreement
Agreement 2
Utilization of personnel
Agreement 1
Utilization of personnel
Agreements
Funding
Payment
Solution
7
University Hospital
BTO
Start-up
University Hospital
DepartmentA
cco
un
ts R
ece
iva
ble
Invo
ice
Pa
yme
nt
Pa
yme
nt
Framework agreement
Buy-out agreement
Agreement 2
Utilization of personnel
Agreement 1
Utilization of personnel
Extra Funding
8
The university hospital in Bergen acknowledges the obligation of and a wish to promote research based innovation at the hospital to the benefit of society and the inventors.
The hospital has committed to lay down guidelines to allow innovators to dedicate time to work at their innovation project (the start-up).
The hospital will allocate an additional budget for the purpose of co-funding innovation generated by the hospital employees, in accordance with underlying agreements.
University Hospital
BTO
Framework agreement
Framework agreement
9
University Hospital
BTO
Start-up
University Hospital
DepartmentA
cco
un
ts R
ece
iva
ble
Invo
ice
Pa
yme
nt
Pa
yme
nt
Framework agreement
Buy-out agreement
Agreement 2
Utilization of personnel
Agreement 1
Utilization of personnel
Extra Funding
10
This agreement is subject to the Framework agreement.
BTO will make a draft and present this to the university hospital and the department for signature.
Sets terms and conditions for allocating innovators (medical doctors) to perform work task to further develop their start-up.
Each innovator will be able to spend up to 50 % of their regular work hours at the university hospital department.
University Hospital
BTO
University Hospital
Department
Agreement 2
Utilization of personnel
Agreement 1
Utilization of personnel
Agreement - utilization of personnel
11
The department shall maintain responsibility for payment of salary, social costs, insurance and other duties of the employer.
The department will be granted funding from the hospital in order to cover additional costs, such as employment of subsidiary personnel for a limited time period.
BTO is responsible for managing this arrangement on behalf of the hospital.
12
Agreement - utilization of personnel, cont’
University Hospital
BTO
Start-up
University Hospital
Department
Extra Funding
Acc
ou
nts
Re
ceiv
ab
leIn
voic
e
Pa
yme
nt
Pa
yme
nt
Framework agreement
Buy-out agreement
Agreement 2
Utilization of personnel
Agreement 1
Utilization of personnel
13
BTO
Start-up
Buy-out agreement
Governed by the framework agreement and reflect the terms and conditions as agreed by the arrangement of drafting of personnel.
BTO shall invoice the start-up an amount equal to regular salary for the innovators/doctors plus associated interest.
The start-up will be responsible for payment of the total invoice as well as the value added in accordance with regulations.
The accounts receivable from the start-up shall be handled by BTO on behalf of the university hospital.
The hospital will take the risk of non-refundable costs. In case of non-repayment, the costs will be converted to shares or, in case of bankruptcy, written-off.
Buy-out agreement
14
The medical doctors/innovators will be able to stay in their positions and
at the same time perform R&D activities to benefit the start-up
The hospital department will not suffer financially by these
agreements
The start-up keeps competent personnel to enable growth
The ESA terms of minor financial support are met
No financial benefits or risks are claimed by the tech transfer office
from those agreements – role of facilitator. Return is based on the
exit/selling shares of the start-up
Conclusions
15
