Technion Technology Transfer – Connecting Partners to Find Solutions

2016

http://blog.compass.co/the-2015-global-startup-ecosystem-ranking-is-live

The Global Startup Ecosystem Ranking 2015

29

5.1 2.17.2

27

5.91.8 4.9

29

7.12.3 4.7

48

8.93.4

15.5

75.4

13.2

4.2

31

0

10

20

30

40

50

60

70

80

US Europe & UK Israel China

2011 2012 2013 2014 2015E

Sources: Israel - IVC Research Center, US – KPMG/CB Insights, NVCA - PWC/Thomson Reuters Europe, China – KPMG/CB Insights, Dow Jones Venture Source

$b

“When it comes to innovation and creativity, Israel is second only to the Silicon Valley ”

Steve Ballmer, ex CEO, Microsoft

Tel Aviv, 2012

Note: 2015E is based on first half of 2015 actual

% change 2015 Vs. 2014

US 57

Europe 48

China 100

Israel 24

Israeli Venture Capital Ecosystem : VC Investments - Global Comparison

Israeli High-Tech Capital Raising ($M)

Source: www.ivc-online.com

www.ivc-online.com/Research-Center/IVC-Publications/IVC-Surveys/High-Tech-Capital-Raising

Source: www.ivc-online.com

www.ivc-online.com/Research-Center/IVC-Publications/IVC-Surveys/High-Tech-Capital-Raising

Number of Israeli High-Tech Companies by Deal Size (%)

Leading in Excellence

Home to three Nobel Prize Laureates since 2004

Ranked among the Top 25 engineering schools in the world, Business Insider report

Number 18 in the field of Computer Sciences , recent Shanghai Ranking

Ranked 31st in approved number of U.S. patents, 2014 U.S Academy of Investors Index

Leading in Innovation

Ranked 6th worldwide in entrepreneurship and innovation, according to recent MIT survey

A leading source for Israeli innovation in science and technology

Leading in Entrepreneurship

7th in the Bloomberg ranking: "Top 10 Colleges for Tech CEOs" of companies worth

$1 billion or more.

The Technion – Leading Position

Companies & Management Positions by Technion Alumni

establishment year

GGA Galileo

Source: Samuel Neaman Institute, 2015

1,602 companies were founded and/or managed by Technion alumni

• 1,602 companies were founded and/or managed by Technion alumni (establishment

year 1995-2014).

59% are at revenue stage (active companies): Initial Revenues (40%); Revenue Growth (19%)

53% - ICT; 24% Life sciences

79% of the companies employ less than 50 employees

• Companies established /managed by Technion alumni have directly employed

about 95,500 jobs

• 34 foreign R&D centers in Israel were established or managed by Technion alumni

• 1,319 companies (in Israel) established/managed by Technion alumni

• Total capital raised by Technion related companies : Over $ 6,406M Volume of Technion

related companies (merged /acquired): Over $ 28,063M

Source: Samuel Neaman Institute, 2015

Companies & Management Positions by Technion Alumni

• 72 Israeli companies on NASDAQ. 42 of them (58%) founded or managed by Technion alumni

• 64 Technion alumni established /managed 42 companies that are currently traded on NASDAQ (29 are founders of companies and 35 serve in senior positions).

• NASDAQ Market Cap of companies established or manages by Technion alumni is ~ 22 Billion$ (Total Market cap of the Israeli companies on NASDAQ is ~ 98 Billion $).

Companies on NASDAQ Established /Managed by Technion Alumni

Source: Samuel Neaman Institute, 2015

Business • Difficulties in assessing cost or what market might bear.

• Buyers don't know what they are willing to pay.

• Dynamics of the market place is unknown.

• Difficulty assessing cost of goods.

• Difficulty assessing margins, or savings.

• competitive landscape – mostly unknown.

• Financial forecast – mostly unknown.

• Impact in the market place – mostly unknown

• Capital investment required to bring product to the market unclear.

• Many technologies are manufacturing process related, and it is challenging to estimate the savings involved.

• Cost of human resources required is often unknown, so is their availability.

• Difficulty in assessing the regulatory pathway of the product to the marketplace.

Challenges in Technology Transfer

• Most innovations are at a concept level of development.

• Nature and extent of problems remaining to be solved – mostly unknown.

• Period required to develop the IP and hence the remaining life of the patents to be developed – unclear.

• Number of potential applications – mostly unknown.

• IP environment is unclear. Unclear whether it will be possible to obtain adequate IP protection.

IP

Technology

Business (cont.)

• Number of potential applications – mostly unknown.

• Barriers to market entry – mostly unknown.

• Difficulty in making assumptions regarding external factor affecting commercialization.

Challenges in Technology Transfer

Basic Principals observed and reported Level 1

Technology concept and / or application formulated Level 2

Analytical and experimental critical function and / or characteristic proof of concept Level 3

Component validation in laboratory environment Level 4

Component validation in relevant environment Level 5

System / Subsystem model or prototype demonstration in a relevant environment Level 6

System prototype demonstration in an operational environment Level 7

Technology Readiness Levels

Source: Nature Biotechnology 21 ,618 - 624 )2003 (

Principal University and Pharmaceutical Company Partners Associated with the Top Ten Biotechnology Products in 2002

0.51.5 1.5

53%

6%

8%

12%

15%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

2

4

6

8

10

12

14

16

18

20

Feasibility Preclinical Phase I Phase II Phase III

Ave

rage

Roy

altie

s

Inve

stm

ent (

Mill

ions

$)

Chances of Commercialization Required Investment Average Royalties

Potential Investors

Government Incubators Venture Capital Pharma Pharma

Development Graph Levels

The Life Science Investor Landscape

Source: Nature Biotechnology, JANUARY 2014

http://www.nature.com/nbt/journal/v32/n1/pdf/nbt.2780.pdf

T³ - Technion Technology Transfer on a “Tug-Boat” Mission…

Technion Ecosystem – Success Stories

T3 STATS (10/2014-09/2015)

• Over $ 33M in revenue

• Over 40 commercialization agreement

• Over 70 affiliated companies

• Patents • Over 640 active patent families • ~ 100 new invention disclosures • Over 460 patent families available for commercialization • Over 780 patents granted

• Investments • Investments in TRDF affiliated companies: over $200M • TIOF investments: over $1.8M

Sagi Ben-Moshe

• 1999 - Technology started as a project at the Technion GIP Lab • 2009 - Invision Biometrics startup formed, in Yokneam • 2010 - Technion patents acquired and main team established

• Prof. Alex Bronstein, Prof. Kimmel, and Prof. Michael Bronstein • Israel Prize winner Prof. Motti Segev

• 2012 - Intel acquired Invision Biometrics

IVCAM History

Technion, 2001

From POC to Real Product

Peter Van Vlasselaer

NanoVation – GS

Other Domestic & Global VC Funds,

Strategic Investors - Targeting Technion

Innovation

• The Technion ecosystem generates quality technology investable opportunities every year

• TVF will work across main sourcing channels to identify the most attractive investment opportunities

TVF Haifa,

NYC, China

T3 – Technology commercialization

& Transfer activities,

IP portfolio

TRDF Accelerators, Incubators, special

Entrepreneurship, Post Doctorates and other

special Programs

Team Personal Network, Angels &

VC Community Israel & Haifa High – Tech Ecosystem, Industrial parks,

Industry

Technion Faculty, Alumni, Research

Associates, Students

Deal Flow – Sourcing Channels TVF – The Investment Opportunity

Focus, Criteria, Process

Investment Period – 5 years Disciplined pace : deploy $20-30m annually

20-25 Portfolio Companies

Innovative Technology,

Product

Management: Experience,

Structure

Sustainable Business Model

Strategic Co-investors, Syndication

Market: Size,

Growth

Capital Efficiency

Criteria

Follow-on Initial

Lead investor : DD, TS, Agreement, Syndication Support :Strategy, Recruitment, Introductions, Capital Raising, Exit

A B C D +10X

Process

Category Leaders

Exit

Seed

Innovative early stage developed technologies Contrarian approach

A

Stage

$2-4m $5-8m $200-750k

B C D

Focus

Information Technology

Internet / Mobile, Iota Cyber

Sector

Winners - full cycle support, maintain 20-25% equity until exit

$50-150k

Pre Seed

Life Science Medical Devices

Digital Health

Sustainable Technology

$20m

TVF – The Investment Opportunity

Focus, Criteria, Process

Benny Soffer T3 - Technion Technology Transfer sofferb@trdf.technion.ac.il