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Cambridge Enterprise Limited

An overview

April 2007

www.enterprise.cam.ac.uk

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University of Cambridge

University established in 1209

Students: 16,500 (11,600 u/c, 5,000 p/c)

20% from overseas representing 100 countries

Over 100 departments, faculties and schools

World Class Ranking (Shanghai 2005)

1. Harvard

2. Cambridge

3. Stanford

4. Berkeley

5. MIT

6. Caltech

7. Columbia

8. Princeton

9. Chicago

10.Oxford

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Data for 2005/6

University research funding

Total £295.5 million

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The Cambridge Phenomenon

• University people and ideas are at the core of many new technology ventures

• Over 1,000 innovation based companies– >500 in IT and >200 in the Life Sciences, the most rapidly expanding

sectors– Nicknamed ‘Silicon Fen’– 8% of all European venture capital invested in Cambridge

(Library House: first half of 2004)

• University organisations have helped develop the infrastructure of the ‘cluster’– Trinity College: Cambridge Science Park– St. John’s Innovation Centre– Peterhouse Technology Park

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Teaching and researchIntellectual

property

RSD Partnership Group

Cambridge Enterprise

Large companies

SMEs

Embedded research labs and Licensing

research communities Consultancy

Support for technology transfer

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Existing business

Form a business

Inventions

Software

Materials

Patenting

&

Marketing

Commercial Agreements

3 months

DueDiligence

&

Revenue Distribution

6 – 24 months

6 months – 20 years

Baseline - Selected Technology Transfer Metrics for 2005/6

152 annual disclosures 800 cases under mgmt

59 new patent applications350 patent familiesUnder mgmt

61 agreements, (4 spinouts)243 agreements under mgmt (54 spinouts

£3.3 million

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Baseline

• For fiscal year 05/06:– 61 commercialisation contracts closed with new and

existing companies to commercialise University of Cambridge innovations.

– £6.2 million was generated in consultancy and technology transfer

– £5.3 million was distributed to stakeholders (academics and departments).

– £1.6 million in seed fund realisations (most of which is available for reinvestment per evergreen structure)

– 25 FTEs and costs of operations/personnel covered by net revenues, grants and HEIF funding

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Baseline - assets under management

• Three overlapping portfolios– Licensing contracts and corresponding

revenue streams (250+)– Consultancy contracts with corresponding

revenue streams (150+)– Equity holdings obtained in consideration of

license, equity investment or non-financial support (60+)

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Recent relevant policy and organisational milestones

Intellectual Property – as of December 2005• The University has the initial right to apply for patents arising from

work of staff and students of the University • Cambridge Enterprise reviews inventions for patenting within 30

days – or longer if mutually agreed• Copyright in software belongs to academics

Organisational Structure – as of December 2006• Cambridge Enterprise is a Limited Company• The University of Cambridge is the shareholder

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Structure and GovernanceCambridge Enterprise Relationship to

University of Cambridge Committee Structure

Regent House

CouncilGeneral

Board

EducationResearch

PolicyFinance

CommitteePlanning & Resources

BuildingsCouncils of

Schools

Cambridge Enterprise Ltd

Board of DirectorsInterfaces Here

Cambridge Enterprise Ltd

Chief Executive Interfaces Here

as a member RPC

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Markets

• The focus of the plan are the internal and external markets CE must understand and address:

– The primary internal customers are University of Cambridge academics and also include:

• Academics and Students• Administration (VC, Pro-VC, Registrary, Financial Director)• Departments and Schools• Colleges• Units with overlapping interests (RSD, Communications, Development)• Governing bodies

– The primary external customers are buyers of IP or licensees but also include:

• Companies interested in IP• Investors interested in University affiliated companies and entrepreneurs• Organisations with relationships with the above such as Consultancies• Professional advisors (fund raisers, banks, law firms, accountants• Service providers such as incubators• Government and other granting agencies

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Principles

1. Accept cases into the portfolio with the strongest potential to make a significant positive impact and using commercial channels is the most reasonable means to bring the idea forward.

2. Take the course which supports commercialisation of the technology.

3. Work effectively with the inventor(s) to support their aspirations, manage conflicts and encourage synergy with the mission of the university.

4. Find the best partner (licensee or start-up senior management and investors) to take the idea forward.

5. Negotiate fair and reasonable terms which reflect the contribution of the assets and expertise being transferred.

6. Close lots of good deals.

7. Look after the deals once they are closed.

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9 points to consider in licensing university technology

1. Universities should reserve the right to practice licensed inventions and allow other non-profit and governmental organisations to do so.

2. Exclusive licenses should be structured in a manner that encourages technology development and use.

3. Strive to minimize the licensing of future improvements.4. Universities to anticipate and help manage technology transfer

related conflicts of interest.5. Ensure broad access to research tools.6. Enforcement action should be carefully considered.7. Be mindful of export regulations.8. Be mindful of the implications of working with patent aggregators.9. Consider including provisions that address unmet needs, such as

those of neglected patient populations or geographic areas, giving particular attention to improved therapeutics, diagnostics and agriculture technologies for the developing world.

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Closing thoughts

• The environment for our working grows increasing complex. These complexities are: cultural, political, legal, financial, operational, technical and interpersonal.

• Working well at the interface of for-profit and not-for-profit systems is one of the keys capturing value from innovation. Both systems work well: for-profit system and the academic innovation machine. If you compromise either one delivering innovation to the public isn’t sustainable. In order to work at this interface it’s important to understand and respect both machines.

• One of major challenges in working at this interface is managing multiple missions. That is we are, as a university, engaged in commercialising certain research results for the purpose of: a better world, a more robust economy, service and support to academics and students, building industry relationships, and revenue generation.

• Capturing a fair return on our intellectual property assets is not only and responsibility, it is irresponsible not to do this.

• Accordingly, a principle centred approach is more important than ever. And, innovation is more important than ever: innovation doesn’t just need to occur in the laboratory, it needs to occur in policy, legal, financial and business arenas as well.

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A selection of technology companies formed by University of Cambridge staff and students

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Cambridge Positioning Systems Ltd

High accuracy mobile location solutions

www.cursorsystem.com

October 1997

Cambridge Display Technology Inc

Application of light emitting polymers

www.cdtltd.co.uk

July 1992

Granta Design Limited

Software for engineering materials IT

www.grantadesign.com

April 1994

BlueGnome Ltd

Statistical modelling software for drug -

discovery.

www.cambridgebluegnome.com

October 2001

Cambridge Flow Solutions Ltd

Consultancy and provider of CFD software

www.cambridgeflowsolutions.com

February 1999

ZinWave Ltd

Unified wireless infrastructure

www.zinwave.com

November 2002

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Metalysis Ltd

Generic Electrolytic Processes

www.metalysis.com

October 2001

Hypertag Ltd

Wireless Information Access

www.hypertag.com

December 2003

Plastic Logic Ltd

Development of Plastic Semiconductors

www.plasticlogic.com

November 2000

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Cambridge Semiconductor Ltd

Power Electronics

www.camsemi.com

July 2000

CEDAR Audio Limited

Signal Processing

www.cedaraudio.com

February 1989

Genapta Ltd

Next generation bio photonics

www.genapta.com

July 2001

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Cambridge Biotechnology Ltd

Neuroscience drug target and discovery

www.camb-biotech.com

June 2001

Biotica Technology Ltd

bioticaTECHNOLOGY LIMITED

bioticaTECHNOLOGY LIMITED

Therapeutic polyketides

www.biotica.co.uk

April 1997

De Novo Pharmaceuticals

Ltd

In Silico drug design

www.denovopharma.com

April 1999

Astex Technology Ltd

Fragment-based drug discovery

www.astex-technology.com

December 1999

Co-founded with University Staff

KuDOS Pharmaceuticals Ltd

DNA repair inhibitors and other small molecule anticancers

www.kudospharma.co.uk

December 1997

A Selection of Biotechnology companies formed by University of Cambridge staff and students

Cambridge Biotransforms Ltd

Bio-organic chemical transformations

March 1997

Diagnostics for the Real

World Ltd

Diagnostics f or the Real World Ltd

Diagnostics for third world countries

April 2003

Daniolabs Ltd

Phenotype driven drug discovery

www.daniolabs.com

July 2002

Solexa Ltd

The analysis of DNA

www.solexa.co.uk

September 1998

Paradigm Therapeutics Ltd

Novel drug targets

www.paradigm-therapeutics.co.uk

June 1998

24/05/2004 © Cambridge Enterprise, 2nd Floor, 16 Mill Lane, Cambridge, CB2 1SB. Phone: +44 (0) 1223 760339. Fax: +44 (0) 1223 332988. E-mail: enquiries@enterprise.cam.ac.uk

Chroma Therapeutics Ltd

Novel anti-cancer medicines

September 2001

Akubio Ltd

Acoustic Detection Technology

www.akubio.com

August 2001

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for additional information

• www.autm.net

• www.univo.org.uk

• www.praxiscourses.org.uk

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Cambridge Enterprise LimitedUniversity of Cambridge10 Trumpington Street

CambridgeCB2 1QA

www.enterprise.cam.ac.uk

Tel: +44 (0) 1223 760339Fax: +44 (0) 1223 764888