BuildingaQ-CampusRealisingaQuantumecosysteminDelft

1. Ambition and advice 3

2. Growth projections 7

3. Campus organisation 13

4. Real estate models 17

5. Investments and costs for real estate and organisation 21

6. Aggregated investment 24

Summary– narrative1. Quantum technologies have high growth expectations. The next 5-10 years, activities regarding quantum technologies will be R&D centred and concentrated in

R&D centres, especially at university campuses. Delft is well-positioned to take part in the growth of the R&D stage and the transition to the application stage. The market size of Quantum Technologies could grow to a maximum of 65 bn USD in 20 years. Quantum Computing specifically could double the size of the high end computing market from 5 bn to 10 bn USD.

2. Delft is one of top 10 global R&D hotspots with a track record of major research breakthroughs. Currently, quantum R&D activities in Delft are organised in the QuTech programme, surrounded by several public and private R&D activities. To grasp the growth potential of Delft and keep up with global quantum technology development, we advise to present and support all Delft quantum activities as a Q-Campus. In this open Q-campus environment, new partners (e.g. corporates, start-ups and research institutes) with a quantum mission are welcome. At this moment, QuTech alone consists of 200 FTE. When taking all current Q-Campus partners into account, the Q-campus consists of 280 FTE. Building a Q-Campus asks for two formal steps and investments.

3. First. To seize the opportunity at hand, an independent team that forms a one stop shop for the Q-Campus has to be established. This team is responsible for growth of the quantum ecosystem and manages and supports attraction and growth of partners of the Q-Campus. We advise the team to act as a front office: specific management functions of the team will be partly organised and/or supported by existing TUD Campus partners, functioning as a back office. The functions and services of the team are crucial, as current and future Q-campus partners will be spread over different buildings at the TU and the ecosystem is even wider.

4. Second. To show that Delft is ready for new partners and growth, real estate has to be available to accommodate new and current (growing) partners. Current real estate has to be expanded and renovated in the short term for the Q-campus to be an attractive location to establish an office and/or lab.

5. With the help of science and industry experts we have sketched a low and a high scenario for growth. Q-campus has the potential to grow in the next five years (2023) towards an R&D community between 450 FTE (low end scenario) and 900 FTE (high end scenario). This requires setting aside additional space in the current building 22 for the short term. For the long term, new spaces are needed on the south of the TUD Campus. This translates to an additional 3.600-7.400 required sqm on top of the already planned new buildings for QuTech, corresponding with additional investment of 21-44 M€ in 2023. If growth continues even more space is needed to accommodate 500-1.100 FTE in 2030 (30-70% extra space). This constitutes the public and private R&D community; if private activities are attracted or created without direct links to TUD a, additional private buildings are needed.

6. To realise these additional sqm necessary for 2030, we see (after having compared four options) two possibilities for a Q-Campus real estate model. The university can either build an additional 30-70% on top of the planned building for QuTech or a public-private legal entity can be founded to exploit one or more separate buildings. The first model requires a TUD will and financial capacity to invest in 30-70% additional room (with temporary vacancy) for non-competitive R&D by private partners. In the case of the second model, it is preferable to construct one PP vehicle for several new buildings on the TUD campus.

2

1.Ambition and advice

3

1.1Definitionofacampus

Campus• Aplacewhereresearch and(earlystage)product development areperformedbyauniversity orpublicresearchinstitute,togetherwithprivateorganisations

• Aplacewherecompaniescanestablishphysically andwhereinteraction andcollaboration inresearchanddevelopmentisfacilitated

What will a Quantum campus be?

Buildingblocks*campusdesign

Research&Development Programming

Infrastructure Governance

*Buildingblocks based oncasestudies&sitevisit4

1.2Theambition ofQ-CampusThe ambition of Q-campus is to establish, develop and maintain an internationally recognized (top 3 of Europe) quantum technology focused ecosystem, where scientific institutes, globally leading industry partners and innovative start-ups find added value to focus their R&D. This ecosystem pushes the boundaries of science and technology and translates these results in economic and societal impact.

This ambition is based on the vision that quantum technology develops faster in a diverse cluster and most economic and societal impact is created by attracting private activities around an excellent public R&D core.

On a macro scale the Q-campus is instrumental to the national mission of “Global challenges, Dutch solutions”: quantum technology is a gamechanger for applications in the field of new medicine and materials, security and all kinds of optimization problems; contributing to the world’s grand challenges and opening new markets.

• Q-campus will be recognized for: • Excellent science. • State of the art R&D infrastructure, shared research facilities, and supporting intermediate services such as legal, financial, HR and engineering.• A large pool of highly trained talents.• A supportive start-up ecosystem.• Open collaborative culture and extensive national and international (knowledge)network.• “can-do-mentality” and entrepreneurial state of mind

• Within 5 years from 2018, this quantum technology hotspot will be competitive on a global scale and regarded one of the top 3 hotspots in Europe within it’s technology focus.

To meet this ambition, the growth and excellence of the scientific core (QuTech) are a prerequisite.

5

1.3AdvicefordevelopmentofQ-campus

1. Following its ambition, Q-Campus can grow the next five years (2023) to between 450 FTE (low end) and 900 FTE (high end scenario). Precise growth is not predictable, but to grasp growth at all, the partners in Q-Campus have to target the high end scenario and to agree on a strategy for acquisition.

2. To realise possible growth and R&D output, we advise to set up a team that is responsible for the Q-campus growth strategy and functions as a one stop shop and front office for all current and new inhabitants of the Q-campus. For this, we advise to set up a separate legal entity for campus management that has close relations with other TUD Campus partners. For certain tasks, these partners function as the back office. The one stop shop team has to be in charge from Q3 2018 onwards (even if a legal entity takes more time).

3. A condition for growth is to have dedicated space available for new partners and tenants. We see four possible models to realize this space and determine two as relevant for Q-Campus. If the university does not see possibilities to build an additional 30-70% on top of the planned building for QuTech, a public-private legal entity has to be founded to exploit a separate building.

4. Both this separate entity and the public-private real estate vehicle will contribute to an open campus environment where partners can work to their own mission.

5. To make progress on the short term, we advice TUD to reserve and renovate additional space for Q-campus in the TNW 22 building (e.g. in the B/C-wing close to QuTech, Microsoft and BlueFors).

6. Q-Campus ambitions support public (national and international) as well as private goals, so public funding is necessary to realize a Q-Campus that can play a role as an international Quantum hub and release private investments.

6

Projection and advice

2.Growth projections

7

2.1Q-Campusaspartofaworldwidegrowingmarket

• Quantum Computing could double the size of the high end computing market from 5 bn to 10 bn USD. In 20 years.

• For all quantum related technologies (includes sensors, simulators, communications) the market size (in OECD countries) could grow to a maximum of 65 bn USD (with high uncertainty) in 20 years, following the growth path of the UK roadmap Quantum Technology. In comparison: semiconductor market size was 412 bn USD in 2017**.

• The next 5-10 years, activities regarding quantum technologies will be concentrated in R&D hubs, especially at university campuses. It is expected that all technology roadmaps will be tested and developed the next 5-10 years.

• Current expectations of quantum technologies are high and may not be met. There is a chance that, in the next 5-10 years, early investors will be disillusioned by the capabilities and progress in quantum technology, which will result in a decrease in private investments. This is referred to as the ‘trough of disillusionment’.

• Delft is active in 3 of the 4 EU Flagship routes. Additionally, Delft is active in the EU themes of Quantum Engineering, Software and Education. Delft is attractive because of its multi-technology basis and state of the art research in each of its roadmaps. The broad scope guarantees robustness in the rapidly developing field of Quantum Technology.

• When quantum technology is ready for large scale production and application, the proportion of R&D expenses will diminish, but R&D will continue to grow. The Netherlands is not well positioned for hardware and software production in Quantum Technology, due to its human capital constraints and costs. However, it can take its share in still growing R&D and prototyping volume.

• When the global market and technologies grow, partners at the Q-campus will enlarge their footprint and new partners will land. Global IT firms can decide to establish a R&D division (as Microsoft has), to invest in R&D (as Intel does) or to create a small strategic research group that links Delft research to their big R&D locations elsewhere.

Quantum Technology represents a worldwide growing market

*TeamanalysisbasedonMorganStanleymarketestimatesandtheUKQuantumTechnologyRoadmap– additionalstatistics

fromOECD

**Statista,2018

0

10

20

30

40

50

60

70

0-5years 5-10years 10-15

years

15-20

years

MarketsizeinBillionUSD

Timeestimate,from 2017onwards

Prediction ofyearly market

size quantum technologies –

OECD*

8

2.2CompetitivepositionQ-Campus

Knowledgedevelopment• LeadingresearchintheNetherlandsinQT,specificallyinDelft.Highresearchproductivity(top5oftheworldinpublications andcitations).• Severalrecentbreakthroughsincreaseattentionfromalloverworld(e.g.measurementofMajorana-particle;‘on-demand’entanglement;quantumalgorithms).

Talent• GrowingamountofQTrelatedgraduates,STEMstudentswitheligiblebackground(+27%from2012-2016)• TheNetherlandsisanattractiveenvironmentforinternationaltalent.

Financing• DelftandotherDutchresearchgroupsaresuccessfulinattracting(international)fundsforQuantumTechnology(highestamountoffundingperprojectinEU).• DelftattractsfundingfromIARPA,Intel&Microsoft.

Networks• Nationalandinternationalresearchpartnerships.• Highlevelprivatepartnerships.

Leadership• QuTech seemsmostcommerciallyorientedquantumhubofEurope(comparedtootherhubssuchasCopenhagen&Aachen).

Infrastructure&services• NetherlandsandDelftinparticularhavehighqualitystart-upEcosystem(Yes!Delft ranked2ndinEurope).• GenericresearchinfrastructureunderpressureinTheNetherlandswithdiscontinuationfundingNanoLabNL.

9

Delft is well-positioned for world leading quantum technology in next decade

2018 20232018 20232018 2023

2.3Growth projections 2018-2023current partners

10

Growth CURRENT partners (FTE) Assumptions for growth:• 28-60 fte**• TNW,3ME&EWI

TUDelft

• 250-400 fte• dependingonacademicfocus&strategyforhigherTRLs

QuTech

• 40-50 fte• dependingonsuccessofMajoranaroadmap

Microsoft

• 20-40 fte**• depending onindustrialdemand forengineering

TNO

• 10-20 fte• depending onFault tolerantroadmapsuccess

Intel

• 12-40 fte• dependingondemand

DelftCircuits

• 15-30 fte• dependingondemand

SingleQuantum

• 4-15 fte• dependingonR&Dambitionsanddemand

Bluefors

• 4-15 fte• dependingondemand

CLASSIFIED

~670

~380~280*

*200fte QuTech,28fte TUDelft,4fte TNO,51fte corporates,start-ups,suppliers **fte outsideQuTech withquantumtechnologyrelatedactivities

A low and high end projection was made to take possible events as a ‘trough of disillusionment’ into account, leading to a decrease in investment in quantum technology. If this would take place in the period of 2018-2023, the low end projection can be used. However, we expect that the timing of this trough will differ for specific quantum technology roadmaps which would result in a growth projection between low and high.

2.4Growth projections 2018-2023newpartners

11

Type, growth and number of NEW partners :

Typeofpartner

Characteristicsofpartnertype

Growthovertimeinftepernewpartner

#ofnewpartners(lowend)

#ofnewpartners(highend)

Corporate newresearchdivision 15 to50 ftein8years 1

(startin2020)3

(startin2019,2021,2023)

Resident strategicresearchgroup 2 to5ftein4years 2 6

Start-up* knowledgebasedfirm 2 to25 ftein7years 3 12

Supplier specialisedengineeringfirm 4 to12 ftein9years 3 8

Total 9 29*Assumptionisthatnotallstart-upssurvivebeyond2023,seetechnicalattachmentfordetails.

2.5Growth projections 2018-2023– current and newpartners

12

CURRENT and NEW partners 2023Projections are dependent on:• Worldwide quantum developments• Success of current partners• Attraction of European funding• Attraction of new partners• Accommodation and retention capacity

for current and new partners

This requires an effective campus management organisation

0100200300400500600700800900

2023

LowEnd~450fte

2023

Highend~900fte

Newpartners

Currentpartners

3.Campusorganisation

13

3.1KeyfunctionsofCampusManagement

14

Division of work between Campus Management and existing TUD Campus partners

**Function listbased oncasestudies&sitevisit

Onestopshop:

Torealise agrowingecosystemwithmaximalR&Doutputofallpartners,weadvisetosetupaseparateentityforcampusmanagement:aseparateentity(separateformTUDandeparate fromQuTech)thatcansettlecontracts,realise acquisitionandfulfillonestopshopaccountmanagement.*CampusManagementhas9functions.**ThesefunctionsarepartlycarriedoutbyCampusManagementstaff themselves,andpartlyoperatedbypartnerorganisationsonTUDCampus.Q-Campusorganisationmakesallianceswiththeseorganisations.Mostlyasasubcontractorwithservicelevelagreementsorpurchasingtrajectoriesinexistingprograms.Inthisway,CampusManagementcanfunctionasonestopshop.

ResponsibilityofQ-campusmanagement

Organisedand/orsupportedbyexistingTUDCampuspartners

1.Marketing&BrandingofQ-campus MarketingandbrandingofDelftasanattractivecontext

2.Industryacquisition,retention&strategy3.Onboardingofnewcompanies

• Legal,Housing,• Generalaccountmanagement,Technology,Publicrelations,Humanresourcesupport

4.Sharedresearchfacilitiesmanagement

5.R&DCollaborationsupport

6.Venturing&start-upsupport

7.Labourmarket/Jobmobilityservices Responsible forhumancapital

8.Publicfacilitiesmanagement• Food&Leisure,Publicspaceinfrastructure

9.Lobbyandrepresentationinpolicymaking

*Tostartimmediately,adedicatedteamcanstartastaskforcethathasthejobto(1)fulfilthetasksofacampusmanagementand(2)preparetheseparateentityandarrangedivisionoftaskswithotherorganisations.

3.2KeyfunctionsofCampusManagement:organisation

15

Campus Management allies with operating partners to create activity

Q-Campusmanagement

TUDcampus&realestate

TUDenterprises

YES!Delft

QuTech

InnovationQuarter

TNO

• Onboarding newpartners• Developing realestate• Maintenance• Services(ICT&FM)Alliance:partnershipfor onboarding

• IPprotection andexploitation

• Financing andventuring

Alliance:relationshipthrough existingprocedures

• Start-up programAlliance:subcontractorwith supervision

• Businessdevelopment• Acquisition• Branding

Alliance:partnership

• Sharedfacilities &demonstrators

Alliance:partnershipinresearchinfrastructure

• R&Dpartneringandbusinessdevelopment

with campusinhabitants (servesasguidance for campus

management)

3.3Governance ofCampusManagement- comparison

Independentteam Programorganisation(taskforce)

Entity Separatelegalentity(Stichting/BV) Noseparateentity

Board GoverningBoard:MembersfromQuTech,TUD,TNOandFirms* SteeringGroup

Team Independentteam Personnelfromoperatingpartners

Funding Founders’fund/servicefee Fundingallocatedbyoperatingpartners

Mandate -Riskwithoutstrongcovenant

+Directlinktooperatingpartners

Management +Organisationalandlegalindependence

-Differentmanagementsystems

Nolegalindependence

Actionability +Focusonsingleassignment

-Riskoflowprioritybypartners

To guarantee an open campus model, we advise to set up an independent team

*Inafoundation:TwoboardmembersfromfirmspreferablyhavetobeappointedinayearlymeetingofallfirmparticipantsoftheQ-Campus.

16

4.Realestate models

17

4.1Models forQ-Campusrealestate vehicle

Current TUD plans:• Build 13.150 sqm for QuTech (based on

340 FTE forecast in 2023)• Build cleanroom of max. 5.600 sqm• Totalling 18.750 sqm

Total Q-campus projected size:• 450 to 900 FTE in 2023 • 500 to 1.100 FTE in 2030• Requires ±4.200 to ±10.000 sqm in 2030

(30% to 70% extra to QuTech capacity).• Requires visible available sqm

18

Model Examples

Publicbuildsfor

public,privatefor

private

qLeidenBioSciencePark:UniversitybuildsforUniversityandstart-ups(in

incubatorbuilding);privatefirmsbuygroundingroundlease(‘erfpacht’)and

buildone-tenantormultitenantbuildingonowncosts(Elementsoffice,

includinglabs,privatelydevelopedbyProvast.12000sqm)

Universitybuildsfor

bothpublicand

privatetenants

qUtrechtScienceParkwithLifeScienceIncubator(6.200sqmonlyforstart-up

firms).

qBioPartner Center Leiden(UL,LUMC,MunicipalityLeiden,18.500sqm)(only

universityspinoffs)

qUniversityofAmsterdambuildsAIHotspot(co-creationbuilding,11.000sqm,

7.000sqmforUniversityand4.000sqmforotherpublicandprivatetenants

withtheirpre-competitiveresearch)

Universityandprivatedeveloper

(andothers)

constructaspecific

PPvehicle

qChemelot Vastgoed CV(Province,DSM,MaastrichtUniversityandChemelotCampusBV)ownsthesiteincludingCenter Court(2016,18.000sqm,35M€)

Additionallytwomultitenantbuildingswerebuilt:18.000sqm,26M€in2018.

qAmsterdamSciencePark:MatrixInnovationCenter CV(ownersareNWO,UvA,

MunicipalityAmsterdam,Rabobank)hasbuiltMatrixI-VIforprivatetenants

(facilitatedbyprivateinvestors)

Privatedeveloperis

ownerforboth

publicandprivate

tenants.

qHTCEindhoven(Ramphastos Investments),alsowithPublic-Privatetenantsas

Solliance andHolstCentre

qAmsterdamSciencePark:MatrixVII:2018,8.000sqm,withprivatetenants

(105firms)andalsoapublictenant(ARC-NL)

Investmentdecisionmustbemadenowtofacilitategrowthinthefuture.Thereareseveralmodelsinusetocombinepublicandprivateusersinonecampus.

19

4.2aModels forQ-Campusrealestate vehicle

ModelI ModelII ModelIII ModelIVPublicbuildsforpublic,private

forprivateUniversitybuildsforbothpublic

andprivatetenantsUniversityandprivatedeveloperconstructaspecificPPvehicle

Privatedeveloperisownerforbothpublicandprivatetenants.

PRO

q Universitydoesn’thaveentercommercialtasksandrisks.

q Limitedbuildingcost:universityonlyhastoinvestforpublicresearchers.

q Roomforprivatepartnersisguaranteed:pro-activeacquisitionispossible.

q UniversityandQ-campuscanselecttenants.

q Flexibility:Itiseasiertomakeroomforpublictenantsavailableforprivatetenants(andviceversa)

q Universityandprivatepartnerssharebothopportunitiesandrisks.

q Limited(shared)buildingcosts.

q ThePPvehiclecanbegivennecessaryroomformanoeuvre.

q Easierforprivateinvestorstogetonboard.

q Universitydoesn’thaveentercommercialtasksandrisks.

q Noinitialbuildingcosts.q Alongtermrentcontract

attractsprivateinvestors.q Limitedcostsfor

maintenanceandsupport.q Flexibility

CON

q Ifacommercialinvestorislacking,nooffices/labsaredelivered.

q Ifancommercialinvestorisin,theinfluenceofQ-campusondecisionsofthisinvestorislimited.

q Universityenterscommercialtasks(’staatssteun’)andrisks.

q AsksforbiggerinvestmentsbyUniversity

q Campusmanagementhaslessroomformanoeuvreinattractingtenants.

q Aprivateinvestorisnecessary

q Complex,longprocesstofirstlyagreeonanmutualcorporationwithaprivatedeveloperstilltofind.

q Onthelongterm,costsarehigherforpublictenants(rentsin30yearswillexceedbuildingcostsandrent)

q Ifacommercialinvestorislacking,nooffices/labsaredelivered.

BothmodelIIandmodelIIIarerelevantforQ-campus.Thefinalmodeldependsonthestrategicchoiceoftheuniversitywhetheritiswillingandabletoinvestin30-70%additionalroom(withtemporaryvacancy)fornon-competitiveR&Dbyprivatepartners.InthecaseofmodelIII,itispreferabletoconstructonePPvehicleforseveralnewbuildingsontheTUDcampustodeveloptrackrecordandeconomiesofscale.

20

4.2bModels forQ-Campusrealestate vehicle

indicators ModelI ModelII ModelIII ModelIV

Publicbuildsforpublic,privateforprivate

Universitybuildsforbothpublicandprivatetenants

Universityandprivatedeveloperconstructaspecific

PPvehicle

Privatedeveloperisownerforbothpublicandprivate

tenants.

Complexity(forQ-campus)

Flexibility(forQ-campus)

Ability(forQ-campus)tooperateindependenttoallpartners

Opennesstonewentrants

BuildingcostsforTUD

FinancialrisksTUD

CommercialrisksTUD

Dependencyonprivateinvestor

Attractivenessforprivateinvestoranddeveloper -

Fastacquisitionofcompaniespossible

negative effect

5.Investmentsandcostsforrealestateandorganisation

21

5.1Required extra realestate investments

HighEnd:900FTE:7.200sqm

LowEnd:450FTE:3.600sqm

22

Assumptions

Averagecostpersqm:~€4.630/sqm**.

Investments for infrastructure 2023 (M€)

Necessaryextra sqm*in2023forprivatepartners:

17 M€(+16% i.r.t. planned investments)**

34 M€(+31% i.r.t. planned investments)**

*SQMingrossinternalarea(GIA)basedonworkplacerequirementsbyCampusDevelopmentTUD.**Confidential. AverageareapriceaccordingtoCampusDevelopmentTUD. Buildingcostsbasedon39%labspace,with93%regularVC-Clabsand7%VC-Elabs.Parkingspaceinvestmentincluded.Allinvestmentsarepricelevel2023includingBTW.Formoredetailsoncalculation,seethetechnicalattachment

The growth towards between 450 and 900 FTE in 2023…

• Is partly accommodated by investments in a new QuTech building

(our forecast for QuTech, 250 to 400 FTE, will in all cases be

accommodated by planned real estate in 2023)

• Regards partly TU staff (TNW, EWI and 3ME) and KAVLI QN staff

that will work in TNew building (30 to 60 FTE in 2023) and TNO

staff that will be located at TNO offices and labs (20 to 40 FTE).

• Additionally 170 to 400 FTE has to be accommodated in sqm’s still

to be decided. This corresponds to an additional 3.700-7.600 sqm

and an additional investment of 17-35 M€ of infrastructure for

2023.

If growth continues after 2023, Q-Campus has to account for 500 to 1.200

FTE in 2030, (requiring 30% to 70% extra space).

5.2YearlycostsforCampusManagementorganisationandprograms

1. Executive director2. Business developer / account management3. Program coordinator manager R&D and Venturing programs4. Program coordinator Facilities & Community management5. Communication & Support

Yearly costs: 0,7M€ team salary costs + €300.000 out of pocket costs (website, travel expenses, events, supplies, office)*

• Start-up program using expertise and services of partner YES!Delft• Valorisation support using expertise and services of partner TUD Enterprises• In total 10 discovery programs a year, 10 validation programs a year, 2 acceleration program a year, IP protection, IP exploitation

(± €400.000 per year)**• Business development program (acquisition of new partners for Q-campus, ± €100.000 per year)

23

Team for management requires 5 FTE and costs 1,5M€

Yearly program costs

Total yearly costs: ± 1,5M€

*Estimationsbasedonothercampusmanagementorganisations.**BasedonfeeactuallyrequestedbyYes!Delft andTUDEnterprises.

6.Aggregatedinvestments

24

6.1AggregatedInvestmentprogramforaQ-Campus:summary

25

To realise Q-campus, an investment program for 10 years can be built to attract public and private investors. This investment is based on a high growth scenario. In the high scenario, QuTech (400 FTE) and other public participants (100 FTE) will grow towards 500 FTE in 2023. This has to be realised by national and international grants and R&D investments of firms. These grants can bee seen as an indicator for globally accepted research quality.

Totalcostsintenyears

(M€)

AlreadyfundedbyTUD/TNO

(M€)

Privatepaymentsin10years(M€)

1.Q-Campusmanagement 152.VCFund 103.Renovation,enlargementandinhousemodernisation ofactualbuildingfor7years* 15 0 54.Dedicatedcleanroom:construction,instrumentsandsupport* 42 10 55.Labfacilities(e.g.fridges),technicalservicesandDemonstratorPlatforms,includingengineeringstaff*

33 11 56.QuTech buildingonDelftSouth(developmentandconstruction2019-2023;exploitation2024onwards)*

42** 42**7.Extrasqmforprivatetenantsinadditionalfloorspace 24 10Totalprogram 180 63 24

BudgetsVATinclusive (asfarasrelevant)*Numbers basedonestimationsQuTech management**Confidential.

6.2AggregatedInvestmentprogramforaQ-Campus2019-2028

26

To realise Q-campus, an investment program for 10 years can be built to attract public and private investors. This investment is based on high growth scenario. Numbers are in M€.

ColumnAareinvestmentswith10-30yearsdepreciation.ColumnFaretotalcosts(depreciationandother

expenses)intherelevantyearswithinthefirsttenyears(some5,some7,some10,seecolumnYears.

Years A.Initialcapex BDeprec-iation/year

C.(other)costs/year

D.Totalcosts/year

(B+C)

E.Incomes:

sales&rent/year

F.Totalcostsin

tenyears

G.TobefundedbyTUD/TNO

H.Privatepaymentsin

10years

1.Q-Campusmanagement 2019-2028(10) 1,5 15

2.VCFundorsubfund (executedbyanexistingfund) 2019-2028(10) 5 0,5 10

3.Renovation,enlargementandinhousemodernisation ofactualbuildingfor7years*

2019-2025(7) 15 15 4,7

4.aDedicatedcleanroom:construction,maintenanceandsupport*

2024-2028(5) 23 2,3 1,2 3,5 0,5 18 10 2,3

4.bCleanroominstruments* 2019-2028(10) 18 1,8 0,6 2,4 0,2 24 2,4

5.Labfacilities(e.g.fridges)andDemonstratorPlatforms,includingengineeringstaff*

2019-2028(10) 13 1,3 2 3,3 0,5 33 11 5,0

6.QuTech buildingonDelftSouth(development&construction2019-2023;exploitation2024onwards)*

2019-2028(10) 72 2,4 5,9 8,3 42 42

7.ExtraSQMforprivatetenantsinadditionalfloorspace 2024onwards(5) 34 1,1 3,5 4,6 1,9 24 9,5

Totalprogram 180 180 63 24

Fundinggap 93

*NumbersbasedonestimationsQuTechmanagement.

**Confidential.

ColofonThis report was written at the request of the Ministry of Economic Affairs and Climate Policy to write a business plan for a Q-campus in Delft. The landing of private and public partners surrounding the excellent research institute (National Icon) QuTech is the start of a quantum ecosystem that has the ambition to grow into a Q-campus where private R&D labs, start-ups and excellent research comes together.

For this project, a steering committee was formed consisting of:• Bertholt Leeftink DG Bedrijfsleven en Innovatie, EZK• Luuk Klomp plv. directeur Innovatie en Kennis (deputy for Leeftink)• Tim van der Hagen president College van Bestuur TU Delft• Nicoly Vermeulen Lid College van Bestuur TU Delft• Paul Althuis director Delft Enterprises • Leo Kouwenhoven principle researcher Microsoft• Paul de Krom CEO TNO• Ronald Hanson Scientific director QuTech• Rob Woudsma Business innovation consultant QuTech• Freeke Heijman director strategic development QuTech/MinEZK

This report was written by Birch Consultants and lead by Onno Bieleman and Jan Peter van den Toren. Other writers on this report are Bas van der Starre and Dolfine Kosters, with contributions from Elmar Cloosterman and Querijn de Graaf.On 05-07-2018 this report was discussed and approved by the steering committee.

InvestorsVijit Sabnis Kohsla VenturesClaire Lee Sillicon Valley BankIndustryFred van Roosmalen NXP / Topsector HTSMHans Rijns CIO NXPLinda Lauw MicrosoftAndrew Mullaly MicrosoftAcquistion partnersWouter Roelofs Head of Innovation Attaché USA West CoastSigrid Johanisse Counselor for Innovation Science & TechnologyWillemien de Vogel Innovation QuarterWalter de Wit Innovation Attaché BostonAnne Le Guellec Consul-General TorontoCampus expertsLeo le Duc Amsterdam Science ParkFriso Smit Utrecht Science ParkCees Admiraal Eindhoven High Tech CampusCathal Mahon Qubiz KopenhagenFrank Preiss & Research Team Microsoft Station Q & University of Copenhagen SciencePeter Lohdahl Niels Bohr Institute KopenhagenUlrik Lund Andersen & Ulrich Busk Hoff Technical University of Denmark (DTU)Kobus Kuipers Kavli QN / TU DelftLucas van Vliet TU Delft / Decaan Harry Buhrman & Anouck de Hoogh QuSoft & CWISteering committee All members of the steering committee were spoken separatelyTechnology roadmap & campus design teamLieven Vandersypen QuTechLeo DiCarlo QuTechStephanie Wehner QuTechCarlo Beenakker Lorentz InstituutBarbara Terhal QuTechInternal teamFreeke Heijman QuTech/MinEZKGarrelt Alberts QuTech/TNOWilbert Staring TNORogier Verberk TNORob Woudsma QuTechRonald Hanson QuTechMarc Numann, Ivo van Wijk & Anne-Lize Hoftijzer TU Delft Campus Development

This report is partly based on interviews with experts from industry and science. The following people were interviewed.

TechnicalAttachment

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ThisappendixhighlightstheassumptionsunderpinningouradviceinthebuildingofaQuantumCampus.Itistobeusedasbackgroundtoourreportandprovidestechnicaldetails,reasoningandcalculationsforthosethatrequiremoreinformationontheprocessbehindthebusinesscase.Theheadingsoneachsliderefertothesectionforwhichtheadditionaldetailsareuseful.

2.4Growth projections 2018-2023newpartners

In order to define the growth associated with new partners, the four different types of new partners were defined; corporates, residents, suppliers, and start-ups. For each type, a growth path was designed as shown below.• For start-ups, this growth path is in case of survival. In our

model for projections, ⅓ of start-ups do not survive after two years, and ⅔ of startups do not survive after 8 years, based on a stylized fact across industries*.

• This growth path, together with the number of partners, leads to growth projections for new partners.

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0

10

20

30

40

50

60

Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10

FTE

Standardgrowthpathsofnewpartners

Corporate Resident Start-up Supplier

*https://www.statisticbrain.com/startup-failure-by-industry/

5.1Required extra realestate investments

• To determine the number of square meters required to facilitate the growth of Q-Campus, assumptions have been made about use of space for each researcher and support staff in terms of office and lab space.

• Based on information from Campus Development we use an average development price of € 4.630 per square meter.

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From number of FTE to number of required SQMSpaceforoffice/perfte insqm 8,75 Source:TUDelftCampusdevelopment,netinternalarea(NIA).

Spaceforlabperfte insqm 8 Source:documentonscenariofordevelopmentofAppliedSciencesdepartment;’11-21Stuurgroep TN’,page18

Sqmpersupportstaff 8,75 Source:TUDelftCampusDevelopment,netinternalarea(NIA)

Sqmperresearcher 16,75 Aresearcherrequireslabandoffice

Shareofpeoplethatisresearcher 70% AssumptionbyBirchbasedoncurrentratioandconfirmedbyQuTech

Shareofpeoplethatissupportstaff 30% AssumptionbyBirchbasedoncurrentratioandconfirmedbyQuTech

Averagespaceperpersonrequiredin

sqm

14,4 Basedonratiobetweenresearchersandsupportstaffcombinedwithrequiredsqmperspecifictypeofperson.(70%*16,75+30%*8,75=14,4)

Sharelabspace inbuilding 39% Aratiobasedontheshareofresearchersandamountoflabspace requiredasanamountoftotalspace.(70%*8)/[((70%*8)+(70%*8,75))+(30%*8,75)]=39%

FactortotranslateNIA>GIA 1,65 Thefactorusedtotranslatenetinternalareatogrossinternalarea(GIA).Source:CampusDevelopment.

OccupationofGIAperFTE 70% Researchersandsupportstaffwillnotbeonsitefulltimeandthusbeabletosharespace.Therefore,occupationofspaceisnot100%but70%.AssumptionbackedbyCampusDevelopment.

TotalGIAinsqmperFTE 17 BasedonallassumptionsabovewecalculateatotalGIAperFTE(sqm).