Leading Edge of CommercializationA Case Study
Robin Winsor
There is a tide in the affairs of men,Which, taken at the flood, leads on to fortune;Omitted, all the voyage of their lifeIs bound in shallows and in miseries
Julius Caesar. Act IV, Scene 3
Agenda
• Technology Description
• Timeline
• Struggles, Setbacks and Successes
• Lessons Learned
• What’s Changed
What does IDC do?
Competing Technologies circa 2000
Kodak GE / Seimens CaresBuilt SwissRay IDC
Kodak Fuji Agfa
CMOS
Market
125k
Cost (US$)
350k DR
CR
FILM
Large hospitals
Small & MediumHospitals
Clinics
45 secs
8.5 mins
8 mins
Foothills+
Market
125k
Cost (US$)
350k DR
CR
FILM
Large hospitals
Small & MediumHospitals
Clinics
750
10,000
Uncounted
Market
125k
Cost (US$)
350k DR
CR
FILM
Large hospitals
Small & MediumHospitals
Clinics
750
10,000
Uncounted
IDC : 45secs : <$150k
TimeLine
November 8th, 1895
November 8th, 1995
TimeLine
MutinyClinical TestingRegulatory Approvals
Clinical UseNew Products New Building Rapid Expansion
U.S.”Expert” arrives
N.AmericanSalesU.S.”Expert”
leaves
Downsize Mgmt financing Liquidate assetsLuminary Sites
Scientific Validation $$ Revenues $$
Production Ramp-Up Rapid Revenue Growth International Distribution OEM Partners
19-Oct-89 15-Jul-92 11-Apr-95 05-Jan-98 01-Oct-00 28-Jun-03 24-Mar-06 $100,000
$1,000,000
$10,000,000
$100,000,000
$1,000,000,000
Company Value Over Time
Market Cap
Futures
Lessons Learned
• Trust
• It has to be earned
• Don’t discount the bizarre
• Beware of new friends in good times
Lessons Learned
• Contingency Plans
• Save for a rainy day… it rains a lot !
Lessons Learned
• Build The Right Team For Each Stage
• Scientists NEED marketers and financiers and …
• Management team must complement, not duplicate,
each other
• Finder / Minder / Grinder
• Expect and celebrate change in the lineup
• Do the paperwork
Lessons Learned
• Build An Active Board
• Think carefully before putting a customer on BoD
• Don’t appoint for appearances sake, make it WORK
• Try for diversity
Lessons Learned
• Know When To Let Go
• If you can do it all, you’re not doing enough
• “There is no limit to how much a man can
accomplish or how far he can succeed as long as
he doesn't mind who gets the credit”
Lessons Learned
• Know What You Do
• Core competencies
• Be clear
• Keep checking for drift
Lessons Learned
• Lawyers Can Be Your Friends
• Don’t cheap out on legal services
• Understand their specialities
• Look for chemistry
• File plenty of patents
Lessons Learned
• Pay Your Taxes Happily• Cybera
• National Research Council (NRC)
• Industrial Research Assistance Program (IRAP)
• Alberta Heritage Fund for Medical Research
• Shad Valley
Keep it in Canada
Lessons Learned
• Culture
• Why do you and your staff work so hard – is it for the
same reasons ?
– Fun
– $$$ / Options
– Vision
Corporate Vision
To provide the highest quality, most cost- effective digital
radiography (DR) products in the
healthcare market
Vision
Tuberculosis35% of the world’s population infected
Lessons Learned
• Believe In Angels
• Douglas Street
• Geoffrey Galley
• …and be sure they believe in you
Lessons Learned
• Retail Investors
• Most brokers don’t care
• Learn the elevator pitch
• Expect turbulence
Lessons Learned
• Institutional Investors
• Fund Managers DO care
• Know your numbers
• Expect to be held accountable
Lessons LearnedAREA
ImageQuality
RadiationDose
Cost
NorthAmerica 1 2 3
Europe 2 1 3
Asia 2 3 1
Lessons Learned
China is a huge marketChinese prefer ChineseProtect your IP, then go
What Has Changed
What Has Changed
• Barriers to entry
– Equipment costs falling
– Information easy to access
– Regulatory is a little easier
– Computing power increased by ~8000 x
– Design, prototype cycle reduced from weeks to days
– Competitors know what you’re doing
What Hasn’t Changed
• Need for a good team
• Need for financing
• Need for hard work
• Need for speed
Team Building / Networking Tools
Collaboration / Information Portals
Government & NGO Assistance
TechnicalAnalysis
TechnicalFeasibility
EngineeringPrototype
Pre-productionPrototype
ProductionProduction
Support
MarketNeeds
AssessmentMarketStudy
StrategicMarket Plan
MarketValidation
Sales &Distribution
MarketDiversi-fication
VentureAssessment
EconomicFeasibility
StrategicBusiness
Plan
Financingthe Venture& Business
Start-up
BusinessGrowth
BusinessMaturity
TechnologyDevelopment
MarketDevelopment
BusinessDevelopment
MatureCompany DevelopmentConcept
Goldsmith Model for Commercialization
Innovation Resources
51
Calgary Technologies TCI Programs
Entrepreneur Coaching Services
Financing Your Vision
EntrepreneurBoot Camps
ProgramFocus
Initial Entrepreneur Consultations – any stage or issue
Comprehensive Overview of financing alternatives
Investor-ready business plan and investor pitch coaching
Market Target
Entrepreneurs with ideas and issues with active businesses
Pre-financed startups with a business plan
Start-ups at or near revenue, seeking angel or VC capital
Format On demand with staff and Entrepreneur-in-Residence - no defined length
1 day seminar delivered by industry experts; offered quarterly
2 day seminars and mock investor panels; offered quarterly
Cost No cost but limited time
$ 300 $500
ClientsEngaged
~165 31 40
2002
2002
1997
Technology Commercialization and Incubation
Updated: Jan, 2010
2009
52
Calgary Technologies TCI Programs
Go-To-MarketReadiness
Alberta Deal Generator
Innovate AlbertaVoucher Program
Program Focus
Develop market strategy and launch plans for growth companies
Connect growth companies with angel capital
Advise clients on application, match to service provider and administrate voucher program.
Market Target
Companies seeking assistance to launch new products
Start-ups seeking first round of external capital
Companies from concept to growth stage engaged in commercialization
Format Yearly 6 month workshop
4 forums per year in Calgary and Edmonton
Semi-annual program cycle – project length ~6 months
Cost $1800 $1500 + 2% success fee $1000 - $4000 based on voucher/project complexity
ClientsEngaged
9 25 ($1.4+ M raised) 33 ($650,000 project value)
2007
Updated: Jan, 2010
Technology Commercialization and Incubation
2003
2009
2009
There is a tide in the affairs of men,Which, taken at the flood, leads on to fortune;Omitted, all the voyage of their lifeIs bound in shallows and in miseries
On such a full sea are we now afloat, And we must take the current when serves, Or lose our ventures.
Julius Caesar. Act IV, Scene 3
? ? ? Questions ? ? ?