Jack LangSerial Entrepreneur
Entrepreneur in Residence
University of Cambridge
Creating the Climate for Creating the Climate for InnovationInnovation
Number of high tech firms in Number of high tech firms in CambridgeCambridge
1960 1970 1980 1990 2000
1600
800
300
8% of
EU VC
Cambridge ClusterCambridge Cluster
About 1500 companies– Employing about 50,000– Technion ~30
Largest European cluster $20 billion value created
by Cambridge Alumni– Stanford $1000 billion?
Billion $ market cap companies
– ARM, – Virata, – CSR, – Autonomy, – Cambridge Antibody
Cambridge Angels
Source: Cambridge Technopole Report
Driven by People....Driven by People.... Local heros
– Small core group of “seeds”• Structural and relational social capital
– Network – know each other
• Serial entrepreneurs • Experience, contacts• Trusted by external investors
– Willing to give time to new ventures• Mentoring
– Observable• Articles, talks, dinners• “If he can do it, so can I!”
Until 1985
1986-1990
1991-1995
1996-2000
2001-2002
Cambridge
University
AcornHermann
Hauser
Acquired by Olivetti
Olivetti Research LabAndy Hopper
Adaptive Broadban
d
Cambridge BroadbandAcquired by American Microwave
Acquired by Western Multiplex Corp
Andy Hopper
Peter Warton
IPV (Telemedia Systems)
Andy Hopper
Virata(ATML)
Hermann Hauser
Andy Hopper
Merged with
Globespan
Acquired by AT &T
RealVNC
Virtual Network
Computing
Level5NetworkAndy Hopper
ANTAlex Van Someren
Niko
nCipher
Alex Van
Someren
Netchannel Hermann Hauser
Jack Lang
Acquired by
NTL
ARMRobin Saxby
Element 14Stan
Boland
Acquired by Broadcom
Amadeus Capital
PartnersHermann Hauser
IQ BioHermann Hauser, Chris Keightley
Part of DAKO Diagnostics
DakoCytomation - Merged with
Cytomation Inc
CDT
Richard Friend
Richard Friend Plastic Logic
AnalysysDavid Cleevely
Cambridge Network
David Cleevely
Hermann Hauser
Alec Broers
Cambridge 3G
David Cleevely Virtual Business Network
David Cleevely
SimonElliot
CPSPeter Duffett-Smith
Teraview
Michael Pepper
Don Arnone
Polight Technologies
Stephen Elliott
Pavel Krecmer
ART
Daniel Hall
Pilgrim BeartActiveRF
Pilgrim Beart
Antenova
Zeus Technology
Adam Twiss
David Reeves
Cambridge Semiconductor
Gehan Amaratunga
Florin Udrea
MuscatJohn Snyder
Dr. Martin Porter
Enterprise AcceleratorJohn Snyder
John SnyderWebtop
Smartlogik
Acquired by Dialog
Small World
Richard Green
Authur Chance
CAD
Shape Data
Charles Lang
Acquired by GE
TensailsRichard Green
VBN online
TerraPrise
Ubisense
Andy Hopper
Steve Pope
Andy Hopper
Andy Ward
Pete Steggles
Simon Elliot
Electronic Share Information Acquired by
E* Trade
Hermann Hauser
Jack Lang
Top express
Jack Lang
Splashpower
Lily Cheng
James Hay
Saviso GroupAdam Twiss
Bryan Amesbury
Innovia
Collin Ager
Garraint Davies
Cambridge Interactive Systems
Hermann Hauser Graham
O'Keeffe
Richard
Youell
Andrew Dames
Ray
Anderson
Andy
Hopper
Mike Muller
Duncan
Stewart
Chris
Wade
David Cleevely
Gerald
Avison
Stephen
Ives
Richard Friend
Bob
Pettigrew
Peter Wynn
Alex Van Someren
Robert
Hook
Robin
Saxby
Jamie
Urquhart
Laurence Garrett
Pilgrim Beart
Jack Lang
Phil O'Donovan
Robert
Swann
Stephen
Elliott
John Paul
Auton
Gordon Edge
Dr. Peter J. Duffett-Smith
Nigel Berry
Charles Cotton
Simon
Segars
Sir Alec Broers
Michael Ledzion
Richard King
Cambridge Cluster
Common Directorships/Investments
Source: Yupar Myint and Shai Vyarkarnam
Judge Business School
Hierarchy of NeedsHierarchy of NeedsAbraham Maslow 1943 Abraham Maslow 1943 A Theory of Human MotivationA Theory of Human Motivation
Physiological
Safety
Social
Esteem
ActualisationGrowth
Self- Realisation
Self Esteem
Recognition
Peer esteem
Belong, be accepted
Give and receive friendship
Protection from danger
Economic Security
Warmth
Food
Drink
Air
PAY is not a specific need, only a means
Safety and SecuritySafety and Security Thriving local economy
– Easy to get a job if it goes wrong Conventional jobs not so secure
– Academic competition– Large corporates down-sizing
Try before you buy:
– Sabbaticals, part time appointments
– Spin outs, in-house incubators, “intrepreneurs”
Social & EsteemSocial & Esteem
Compatible with Lifestyle choices
– Working hours– Dress, meetings, schools etc
Social acceptance
–Better to try and fail, than not try
–OK to be an entrepreneur
ComplexityComplexity Understanding the process
–Company formation– IPR–Tax
Finding advisors
–Mentors–Professional services
•Lawyers, accountants, PR etc•Banks, investors• Incubators
AdvantagesAdvantages
Personal Growth Better toys Own boss Prospect of personal wealth
–Tax, IPR licence
ACCTOACCTO Criteria for customer acceptance
– Everett Rogers “The Diffusion of Innovation”• Simon & Schuster International; • ISBN: 0743222091
A - relative Advantage– Loose IPR regime
C - Complexity– Can I understand what I need to do?
C –Compatibility– Part-time posts
T -Trialability– Can I test it without risk first?
• Sabbticals
O - Observability– Can others see the benefits?
• Local heroes
Role of UniversitiesRole of Universities
What Universities should do:
– Teach skills• Money• Legals• Project Planning• Market research
– Mentor• Contacts, exemplars• Friendly infrastructure• Banks, lawyers, patent
agents, accountants etc
– Encourage• Business Plan
competitions• Sabbaticals/part time• Publicity• Network
What Universities should NOT do:
– Run incubators– Run Seed funds– Run Venture Capital
funds– Grab IPR
• No UK University has made money on IPR licensing
– Patent anything
Role of GovernmentRole of Government
What Government should do:
– Positive tax regime• EIS• Soft Loans• Export credits• Secondary Share market• Informal Investment
– Simplify regulation• Reporting• Employment• Skills
– Encourage• Heroes• Network• Outsource
What Government should NOT do:
– Give Grants• People compete for the
grant, not the market
– Run incubators• Leave it to commercial
market
– Run Seed funds• Leave it to the
professionals
– Run Venture Capital funds
• Leave it to the professionals
– Grab IPR• Don’t kill the goose• No European
University has made money on IPR licensing
Cambridge ClusterCambridge Cluster
About 1500 companies– Employing about 50,000– Technion ~30
Largest European cluster $20 billion value created
by Cambridge Alumni– Stanford $1000 billion?
Billion $ market cap companies
– ARM, – Virata, – CSR, – Autonomy, – Cambridge Antibody
Cambridge Angels
Source: Cambridge Technopole Report
University IPR Policy changed
Wildflower Meadow Wildflower Meadow modelmodelSUN (finance)
Rain (expertise)
Market provides fertile ground
Entrepreneur
(Seed)
Market too small
- Stunted growth
- Eventually dies
Seeds form new colonies
(spinouts)
Colonise neighbouring patch
Outgrows strength
= Runs out of cash
- Dies
Harvested by
larger entityPasses through
entity