Commercialization at the University of Waterloo

ideas start here™

Scott InwoodDirector Commercialization

Location

Province of Ontario

Most populated area of Canada (75km from Toronto)

Close to U.S Border (Niagara Falls 130km, Detroit 250km)

Waterloo – concentration of high tech companies (RIM, Dalsa, Open Text, Google, Sybase, Agfa, ComDev, etc)

Quick Facts…the Numbers

6 Faculties ( Applied Health Sciences, Arts, Environmental Studies, Science, Math, Engineering)

29000 undergraduate students, 4800 graduate students, (4500 international), 1100 faculty members

Largest co-operative education program in the world16,000 students enrolled 4500 employers

Top research university three years in a row (Comprehensive category) Researchoce

New: Institute for Quantum Computing and Institute for Nano Technology

More Quick Facts…

$190 M annual research

Only dedicated faculty of Mathematics in North America World’s largest centre for education

in math and computer sciences

Largest concentration of quantum information research in the world

One of Canada’s largest Engineering faculty

Top research university three years in a row (Comprehensive category) Researchoce

Waterloo…in the beginning 1957 - vision to build close

research relationships with industry

Co-op Education Program – 1st in North America (attract students and build industry partnerships)

Focus on Engineering and Math (1st to create a Faculty of Math)

Inventor ownership of intellectual property (an incentive to attract leading & entrepreneurial Researchers)

Intellectual Property Policy

Inventors OWN - no obligation toshare with the University (exception for industry sponsored research contracts)

Philosophy:

Ownership attracts high quality entrepreneurial researchers

Incentive is best motivator to promote transfer of technology for societal use and benefit

Result: UW widely acknowledged as most entrepreneurial research environment in Canada

» Canada’s most innovative university 20 years in a row (Maclean’s Magazine)

Partnering Relationship

Based on mutual desire to partner in commercialization

Formal Researcher’s Agreement : Inventor keeps ownership and grants

exclusive right to commercialize

Revenue sharing (net of patent cost recovery) Inventor(s) 75% and University (25%)

MOST ATTRACTIVE INVENTOR

COMMERCIALIZATION ENVIRONMENT IN CANADA (possibly North America?)

Waterloo Commercialization Office (WatCo)

IP Protection (patents)

Prototype Development\Validation

Access to commercializationexpertise (staff) Technical backgrounds cover all

facets of Engineering and Physical Sciences

Minimum 8 years private sector experience

Entrepreneur-in-Residence

Building Value …….we convert ideas into opportunities

Startup Model Equity in startup company and grants exclusive

license (royalty payments)

Incentive model – all participants in company need to achieve performance milestones to earn stock options

Recruit experienced management “sweat equity”

University provides ongoing “hands-on” support

Inventor provides ongoing technical support

Exclusive License

Equity, Royalty

Milestones

Stock Options

Startup Model

Devulcanization process to recycle scrap tires ( 20-30%)

University secured prototype funding from Government

Recruitment of Senior Manager

$750,000 investment and debt financing (2009)

Pilot scale testing (2010)

Partnership negotiations (2011)

Looking for more investment = full scale plant (2012)

www.tyromer.com

Other Entrepreneurial Support Systems Velocity

undergraduate student startup mentoring residence

Velocity Garage – free office space Venture Fund – funded $1M by

former student

Since 2008, over 180 projects, 34 companies created raising $30M in funding and creating over 600 jobs

WatCo

Other Entrepreneurial Support Systems..continued

Conrad – Business, Entrepreneurship,Technology MBET Program – student teams

working on startup practicum Business plan competitions 50 new startups over past 10 years

WatCo Scientist and Engineers (SEB)

Commercialization Fellowships

Funding partnership with Federal Gov’t $60k for students to launch hi-

tech business

Will support 15 fellowships

WatCo

Recent Commercialization ImpactAccelerator Centre :

As of 2011, 19 graduate companies, 84 companies incubated, raising $72M in funding and generating $43M in revenue and over 600 jobs

Velocity Since 2008, over 180 projects, 34 companies created

raising $30M in funding and creating over 600 jobs

WatCoSince 2009: 5 startups raising over $2M in seed financing 24 license agreements with existing companies Annual licensing revenue of ~ $500k/year ~ $3M in prototype development funding

Regional Commercialization PartnersAccelerator Centre – North Campus

Not for profit business mentoring facility for start-up companies

C4 Network

South western Ontario University technology transfer collaboration

Communitech

Waterloo regional high tech association – “Digital Media Hub”

C4 Network

Commercialization collaboration amongst Southwestern Ontario universities

University of WaterlooUniversity of Western OntarioMcMaster UniversityUniversity of GuelphWilfrid Laurier UniversityUniversity of Windsor

• Resource sharing (people) • Proof of Principle funding• Targeted industry seminars\workshopsy

Accelerator Centre Located on north campus

Business mentors who provide advice and governance discipline

network of expert service providers including legal, IP, HR, and accounting

on- and off-site organized special networking events

daily networking opportunities with other entrepreneurs

Information Technology company association

Digital Media Hub = 44,000 ft² facility that supports start-ups in the digital media market

Assisted > 450 start-ups with mentoring services, networking, access to capital

Client companies have raised over $300M in venture funding

573 jobs created by start-ups

Waterloo Entrepreneurial EcoSystem “It takes a village to raise a child”

WatCo

Business Mentoring facility

High Tech Association – “Digital Media Hub”

Startup Snapshot