Funding and Challenges in Technology Commercialisation
This article explores the various funding instruments, including public funding, support from banks, private equity investment, and venture capital, in the context of technology commercialisation. It also highlights the challenges faced, such as legal frameworks, lack of awareness, entrepreneurship education, integration of engineering and business competence, team recruiting, and high risks in early stages.
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About Funding and Challenges in Technology Commercialisation
PowerPoint presentation about 'Funding and Challenges in Technology Commercialisation'. This presentation describes the topic on This article explores the various funding instruments, including public funding, support from banks, private equity investment, and venture capital, in the context of technology commercialisation. It also highlights the challenges faced, such as legal frameworks, lack of awareness, entrepreneurship education, integration of engineering and business competence, team recruiting, and high risks in early stages.. The key topics included in this slideshow are funding instruments, technology commercialisation, challenges, legal frameworks, entrepreneurship education, team recruiting, high risks,. Download this presentation absolutely free.
Presentation Transcript
2. 1. Introduction 2. Funding Instruments 3. Public Funding 4. Support from Banks 5. Private Equity Investment 6. Venture Capital 2
3. 1. Introduction 3
4. Challenges in Successful Technology Commercialisation Legal Frameworks as Obstacles Missing Awareness and Sensitiveness (Entrepreneurship Education for Scientists) Missing Integrated Concepts Missing Integration of Engineering Competence with Business Competence (Teamrekruiting) Missing Sales Forces R&D Results arent Products High Risks in Early Stages (Gap of (Pre)-Seed Investment) 4
5. OnlineTicket- Technology OnlineTicket- Technology Product Product Encryption of information by algorithms in a 2D-Barcode Ticket ID 82349294 Key ID F5CC06F1 From Technology
6. Product Product OnlineTicket OnlineTicket Technology Cash desk Control center Statistics Ticketshop Online payment Online assistance User Manual Helpdesk + + + + + + + + to Product
7. public research facilities Universities / patent commercialisation agencies medium-sized enterprises captive product development departments / supplier software developer software developer marketing and sales of technological products Sales and licensing of technology Customer Partner public research facilities public research facilities Screening/ purchase evaluation / choice after- sales- service marke- ting sales product- design product develop- ment information and communication technologies 7 Funding Requirements for Product Development
8. ? Investor Inventor ? ? ? ? ? ? 8 Dilemma of Early Stage Financing
9. 9 2. Funding Instruments
10. External Financing Equity Loans Equity Financing Mezzanine- Financing Loan Financing Private Equity Venture Capital IPO Loan Warranties Corporate Bonds Leasing Factoring Asset Backed Securities Internal Financing 10 Instruments for Financing
11. Risk Sales Companys Expansion Stock Market Venture Capital Equity Gap Family, Fools, and Friends Business Angels Loan Financing 11 Phases of Financing
12. 12 Angel Investors Motivation
13. Losses Profits Break Even Early Stage Phase Later Stage Phase Expansion Phase Seed Phase Start-up Phase Entrepreneur Grants Private Pers. Business Angels Incubators Business Angels Incubators Strategic Investors VC/CVC VC/CVC Private Equity Loans Grants Private Equity Investment Bank The Hockey Stick Effect
14. 14 3. Public Funding
15. Sources of Public Funding K Free Consulting (Consulting Agencies) K Supplemental Funding K Equity/Shares K Warranties K Loans 15
16. HighTech Start-up Funds of KfW Coach Start-up Coaching Contract Shareholders Agreement Managementsupport Risk Capital 16 Example: High Tech Start-up Funds
17. Capital required High Low Low High Business Risk Banks and venture capital firms Venture capital firms Financing gap which may be filled by the incubator Banks 17 Sources of Funding in Relation to Business Risk
18. 18 4. Support from Banks
19. Companies Bank Investors Capital Market Capital Universities R&D Institutes Market Research Institutes Associations Networks Industry Information 19 The Role of the Banks
20. Potential Support offered by Banks Management Support and Consulting Information flow to Assess HighTech Start-up Local, Regional Networks Co-operation within an Innovation Team Organisation of and Participation in Fairs Loans But: Rating Requirements 20
21. 21 5. Private Equity Investments
22. Equity Eq. Mezzanine Loan Mezzanine Loans Private Equity Source of Equity Financing or similar Instruments without financing through the stock market 22 Private Equity
23. Institutional Investors (Banks, Insurance Companies, Private Investors etc.) Private Equity-Company/ Funds Portfolio Company Investment Investment + Management Consulting Return Return + Fee 23 Private Equity
24. Private Equity Investors are Co-Owners of the Company: They share Risks and Profits They target Investments in Companies that are not listet in Stock Markets Private Equity Investments target generally for both: Majority or Minority Participation Participation may be active or in-active as well 24 Private Equity
25. Private Equity Investor targets a Return of 20% to 25% Normally they do not look for Desinvestments They use to take Management Responsability They target an Exit after 4 7 Years 25 Private Equity
26. 0 24 First Meeting IPR Situation Team Recruiting Basic Business Plan Milestones Financial Planning Draft Contratcs LOI and Assessment Term Sheet Creation Development Progress in BP Staffing Enhancement of Management Proof of Concept Negotiation Exec Summary Business Plan Presentationen Iterationen Syndification LOI and Valuation Investment Regulations 12 6 18 Months VC 26 How Investors Think
27. Investor Inventor ? ! ? Go for the Goal!
28. Thank you Thank you October 2011
