START UPS

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START UPS SPIN OUTS
Commercialising Cryobiology

• Ian McFadzen

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• Founder of two Start Up Spin Out companies.

• Pubic Sector marine scientist (RD).

• Two years with VC backed biotechnology Co.
  Cambridge Science Park.

• gt2 years commercial RD in North America.

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• Formed during NERC BP competition. Attracted
  personal and corporate investment.

• Negotiated spin-our agreement without host
  organisation taking equity.

• Located - Tamar Science Park.

• Established a track record.

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• Biovault span out from CMB to enter biomedical
  sector.

• Providing Stem Cell Processing laboratories to
  Private Public Sector.

• Tissue Bank repository.

• Global Presence.

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Essentials

• Be brutally honest with yourself.

• Identify needs and plug any skills gaps.

• Build the right Management Team.

• Protect your knowledge base.

• Timing.

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• Shareholders agreement.

• Milestones personal business.

• Innovative strategies creative thinking.

• Accreditations Standards Policies.

• Insurances.

• Exit strategies for all involved.

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Seek Business Support

• Technical endorsement from Business Link
  Advisors, prior to leaving academia.
• Knowledge Transfer Officers other Start Ups.
• GO/RDA/DTI - hand holding, grants awards.
• Networking get on your bike.
• Guidance with Financial Control.

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Seedcorn Funding

• Friends Family.
• Business Angels.
• Debt finance, Banks, SFLG.
• VC.
• Revenue sales.

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FUNDING dont go begging

• Cash flow.
• Seek sufficient appropriate funding.
• Investors back the management team.
• Demonstrate sales profitability.
• Seek funding from a position of strength.
• Allow sufficient time to raise funds.

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The Business Plan

• Coherent, concise and stimulating.
• Outline the technology and the risks.
• Demonstrate a structured strategy, including
  scenario planning.
• Provide detailed financial forecasts.

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Be prepared for the Due Diligence

• Some examples
• - Is there any IP and who does/will own it?
• - What science is involved and who will deliver
  it?
• - How much will it cost to develop and get to
  market?
• - When will you run out of money?
• - How much money do you need?
• - Market position?
• - Competition?
• - Exit strategy?

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