PAXIS WorkshopPAXIS Workshop

Salamanca, 23 June 2005Salamanca, 23 June 2005

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INDEXINDEX

CDTI OverviewCDTI OverviewNEOTEC Mission and phases/instrumentsNEOTEC Mission and phases/instruments NEOTEC Evaluation methodologyNEOTEC Evaluation methodology NEOTEC Results from 2002-2004NEOTEC Results from 2002-2004

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CDTI PresentationCDTI Presentation

– Established 1977.– Public business organization of the Spanish Ministry of Industry,

Tourism and Trade.– Mission: to help raise the technological level of the Spanish

enterprises by:• Financing R&D projects.• Managing and fostering the participation of Spanish

enterprises in international cooperation technology programmes.

• Supporting technology transfer within the industrial sector.

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CDTI´s Operational FrameworkCDTI´s Operational Framework

INTERNATIONAL: INTERNATIONAL: Manage international technology Manage international technology cooperation programmes and support technology transfercooperation programmes and support technology transfer..

1.300 M€ managed for R&D&I in 2005

2.130 M€ of raised capital for R&D&I in 2005

DOMESTIC: DOMESTIC: Manage, evaluate and finance R&D&I business Manage, evaluate and finance R&D&I business projects, foster the creation and consolidation of technology projects, foster the creation and consolidation of technology based enterprises.based enterprises.

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Initiative NEOTECInitiative NEOTEC : Mission : Mission

“To develop a real and virtual infrastructure (network) to facilitate the generation and consolidation of new technology based firms (NTBFs) mainly take-out from R&D results of Spanish Universities and R&D Centres ”

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To training To training potential potential

entrepreneursentrepreneurs

Innovative Innovative IdeaIdea

Mechanisms of Mechanisms of generation&evaluation of generation&evaluation of

technology entrepreneurial technology entrepreneurial projects projects

Training & ConsultancyTraining & Consultancy

Loans ”seed”Loans ”seed” to set-up & develops to set-up & develops

the companythe company

Fund of FundsFund of Funds(In study)(In study)

Loans to Venture Loans to Venture Capital FirmsCapital Firms

EnterpriseEnterpriseGenerationGeneration

1st Round 1st Round investmentinvestment

NEOTEC Projects NEOTEC Projects “enterprise creation”“enterprise creation” Venture CapitalVenture Capital

Evaluation by Technology Rating Tool

NEOTEC Virtual Community(Red Neotec) Diffusion and Promotion Services

Initiative NEOTECInitiative NEOTEC : Phases and Instruments : Phases and Instruments

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• To establish mechanisms to help researchers/technologists during the process of new technology based firms generation. To foster multidisciplinary teams.

• To evaluate the technological entrepreneurial idea: innovation, industrial application, market potential, team, intellectual and industrial property rights.

¤ The best teams will be trained to develop a real business plan.¤ The best teams will be trained to develop a real business plan.

• To foster agreements with universities, business schools, network of mentors, venture capital, business angels, to help the best potential entrepreneurs teams.

¤ Starting to sign agreements with several organizations to build the network services.¤ Starting to sign agreements with several organizations to build the network services.

• Ideally all the services will be located near to the entrepreneur.

• During the process of building all the networked services CDTI will help all potential technological entrepreneurs by its own means.

¤ Unit CDTI-NEOTEC¤ Unit CDTI-NEOTEC

First Assistance (“Entrepreneurial Idea” Phase“Entrepreneurial Idea” Phase) Support to the generation of technology based projects

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• First day financing ( seed). Up to first round financing through venture capital.

• No interest, up to 400.000 Euros loan. The entrepreneur must support at least 30% of the budget.

• Payment in two milestones: 1st. Milestone when signing of contract (up to 60%) and 2nd. milestone (remaining amount).

• Repayment : pay-back when positive cash-flow is generated. Up to 20% of this cash-flow will be established as annual quota.

• No financial guarantees required. THE ONLY GUARANTEE IS THE PROJECT.

• Commercial and technological interest will be the key elements in project assessment.

• Agreements with seed capital funds will be favoured to support common projects.

“Enterprise creation” PhaseNEOTEC Project

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• New Spanish Venture Capital Programme ( To be implemented by end of 2005). To set-up a Fund of Funds instrument through a partnership of private-public organizations ( CDTI, EIF, Big Spanish players in industry, finance, etc). To foster the investment of Spanish venture capital industry in the field of technology companies.

•Venture capital entities that invest in innovative technology based firms.

“Venture Capital” PhaseVenture Capital Company Support

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•European methodology developed by several entities of 5 countries.

• Modular project evaluation that enables comparisons between sectors, technologies and countries.

• New technology based company project data base will be created.

Three evaluation levels:– Technology based company idea.– NEOTEC projects.– Companies for venture capital investment.

Evaluation methodology: Technology Rating (Techrate )

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• The Marketing module has 7 key factors :• MK1 : value creation• MK2 : market potential and attractiveness • MK3 : market segmentation and entry strategy • MK4 : competitive analysis • MK5 : distribution and sales system • MK6 : market communication • MK7 : marketing and sales project management

Evaluation criteria (Techrate )Marketing Module

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• The Management module has 6 key factors :The Management module has 6 key factors :• MG1 : skills and competences of management team MG1 : skills and competences of management team • MG2 : networking capacities MG2 : networking capacities • MG3 : personal motivation MG3 : personal motivation • MG4 : anticipation and reaction to change MG4 : anticipation and reaction to change • MG5 : potential for international development MG5 : potential for international development • MG6 : leadership potentialMG6 : leadership potential

Evaluation criteria (Techrate )Management Module

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The Technology module has 7 key factors :The Technology module has 7 key factors :• TE1 : technological challengeTE1 : technological challenge• TE2 : competitive advantage of the technology TE2 : competitive advantage of the technology • TE3 : technological diversification TE3 : technological diversification • TE4 : R&D strategy TE4 : R&D strategy • TE5 : protection of technology TE5 : protection of technology • TE6 : manufacturing capacities TE6 : manufacturing capacities • TE7 : R&D project management

Evaluation criteria (Techrate )Technology/Product Module

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The Financial module has 4 key factors :The Financial module has 4 key factors :

• FI1 : Financial capabilities and competence of the company

• FI2 : Financial history of the companyFI2 : Financial history of the company• FI3 : Financial projections FI3 : Financial projections • FI4 : FundingFI4 : Funding

Evaluation criteria (Techrate )Financial Module

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NEOTEC NetworkNEOTEC Network

Is an open and multidisciplinary networkIs an open and multidisciplinary network• Neotec Website for all agents interested in the generation

and development of new technology based firms.

• Co-operation with the private and public entities related with this activities.

• Dissemination and promotion services ( promotion campaign, venture capital fora, company exhibitor, seminars, workshops, training courses, etc.)

• Experience exchange with other countries.

• Promotion of agreements with seed capital funds for jointly support of technology projects.

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NEOTEC Approved ProjectsNEOTEC Approved ProjectsCDTI contribution/ Total budget 2002-2004CDTI contribution/ Total budget 2002-2004

20022002 20032003 20042004

Number of projectsNumber of projects 31 31 3535 3838CDTICDTI loansloans 8,58 M€ 8,58 M€ 9,47 M€9,47 M€ 10,98 M€10,98 M€Total budgetTotal budget 18,70 M€ 18,70 M€ 22,50 M€22,50 M€ 26,49 M€26,49 M€

45,8 % 45,8 % 42,0 %42,0 % 41,4 %41,4 %

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NEOTEC Approved ProjectsNEOTEC Approved ProjectsType of Spin-off (2002-2004)Type of Spin-off (2002-2004)

42%

10%5%

43% UniversityR&Dcentres

Technolgy CentresOthers