From Lab to MarketAccelerating Innovations from Ideas to Commercialization

October 22, 2012

Key Take-away Messages

Innovate Calgary is much more than UTI was... has significant business and investment

expertise, & if we don’t have it, we can access it wants to help you commercialize your ideas

Agenda

Peter Garrett, Interim PresidentAn Introduction to Innovate Calgary

Jessie Kubes, LicensingFrom Ideas to IP

David Edmonds, Executive-in-ResidenceFrom IP to Company

Our Vision & Mission

VisionTo be the organization of choice for

commercialization and knowledge transfer.

MissionTo accelerate, facilitate and support innovation in the technology sector.

Innovate Calgary Track Record (0ver 30 years)

Over 1,700 invention disclosures and 690 patents issued Over 590 technology commercialization agreements in

over 24 countries generating over $29M for the innovator community

Consistently ranked one of the top 5 Canadian Institutions in licensing revenue (AUTM Surveys)

Over 40 spin-off companies Supported more than 120 companies prepare to present

at financing forums raising over $10.5M in funds Provided over 1,000 tenants and corporate identity clients

with services at the Alastair Ross Technology Centre

Innovate Calgary’s Ecosystem Role

InnovateCalgary

Researchers/Inventors

Entrepreneurs/SME’s Investors

• Connecting the players• Quantity of interactions• Quality of interactions

Innovate Calgary’s Ecosystem Role

InnovateCalgary

Researchers/Inventors

Entrepreneurs/SME’s Investors

• Providing services to the players

Services

Services Services

Innovate Calgary Services

Company Creation Experienced Executives-in-Residence Dedicated business development personnel Access to a variety of services including: legal, communications,

business planning and financial modeling Corporate structure planning to meet regulatory and investor

requirements, and virtual company capabilities Investor Development

Alberta Deal Generator• Largest network of active and accredited investors in Canada pursing

opportunities in Alberta’s early and growth-stage companies• To date, more than $15 million in financing has been facilitated through Alberta

Deal Generator, in addition to more than $30 million in follow-on investments• Joint initiative with TEC Edmonton

Innovate Calgary Services

Facilities Alastair Ross Technology Centre:

• 120,000-sq-foot facility • Flexible leases and support services• Offers both physical space and virtual tenancy

Research Transition Facility (RTF) Partnerships

Offers a suite of customized services to accelerate the start-up process and commercialization efforts for new Centres of Excellence and academic institutes

Entrepreneur Development Coaching & Mentoring Seminars & Workshops Networking

Innovate Calgary Services

Licensing Commercial assessment  IP protection & strategy Determine pathway for commercialization Marketing technologies Negotiating technology agreements On-going, post agreement management and administration of

intellectual property  Industry Engagement

Provides business-to-business connections between entrepreneurs, SMEs and large enterprise with the goal of assisting in the identification of clients and partners and facilitating partnerships, funding and financing opportunities.

Licensing

Jessie Kubes, LicensingFrom Ideas to IP

Innovate Calgary Commercialization Process

Invention Disclosure

Research Services

Revenue Share Arrangement

Innovate Calgary

Go – No Go

Commercialization Assessment

• Encumbrances• IP Strategy• Patentability• Market assessment• Potential licensees

Report to inventors

Assignment Agreement

Licensing

• Develop technology pitch and market

• File patents• Secure additional funding• Sponsored research and

license negotiation

Company Creation

• Leadership• Expertise• Starter cash

Commercialization Opportunity

•Requires further work

•Pursued by inventor•Abandoned

13

30-day technology assessments (free) Evaluate the science and potential benefits of the technology, its

stage of development, funding sources and related encumbrances, relevant scientific and patent literature, potential market and licensees

Commercialization advice and guidance to researchers Licensing team works with researchers to preserve academic

freedom and get technologies into market Develops intellectual property protection and strategy

Established relationships with some of North America’s prominent law firms

Technology Assessment Process

Identify Encumbrances

Are there multiple owners? Joint ownership can come from:

Funding agreements Sponsored research Material transfer agreements Inventors employed elsewhere Inventor or institution owns policy

Have agreements already been made that limit your ability to commercialize?

14

Dealing with Encumbrances

Unify ownership All owners assign their rights to the technology (and typically

improvements) to a single entity so they have the authority to negotiate agreements

Retain joint ownership All owners agree on a party, or process to commercialize so

everyone is pulling in the same direction• Who pays costs? • Who leads negotiation?

15

Establish appropriate valuations and optimal pathways for commercialization

Market the technology (full-time marketing assistant) Structure and negotiate transactions with industry

partners to maximize value (licensing managers and agreements manager)

Provide ongoing, post-agreement management and administration of IP

Assist with commercialization grant applications i.e.. CIHR POP grants

Following Assignment Agreement

Commercialization Funds

CIHR PoP Phase I and II NSERC Idea to Innovation Phase I and IIa Alberta Ingenuity IRAP Alberta Innovates Voucher Program Alberta Innovates Technology Futures BioAlberta Medical Product Development Program

(MPDP) Gecko funding from TecTerra

Satellite office in the Faculty of Medicine (TRW 5th floor)

Manuscript review prior to publication Actively engaged with two institutes

New initiative launched between AI-HS and Innovate Calgary to assist researchers in mining technologies developed from interdisciplinary team grants

Commercialization support provided by Innovate Calgary Profiling teams to industry IP education for trainees Participation in strategic retreats Reviewing manuscripts and abstracts Presentations

New Proactive Initiatives– AIHS Team Grants

Advantages of Working with Innovate Calgary

Experienced in all aspects of technology transfer and commercialization

Commercialization risk taken on by us E.g. patent and marketing expenses

We protect your academic freedom Provide access to development funds Ensures liability protection for inventors and the

University Allows you to focus on your research

Success Story - Licensing

Piers CatalystsNew Generation Olefin Metathesis Catalysts

• Catalysts for the manipulation of C-C bonds• Can be used in pharmaceutical manufacturing

Dr. Warren Piers and Dr. Patricio RomeroUS Patent issued in April 2008: 7,365,140Licensed to Materia(www.materia-in.com,

Pasadena, CA)Sold via Aldrich (catalogue numbers

707988 & 707961)

Cell Lines for Drug DevelopmentDr. Wayne ChenCell lines to help identify new drug candidates to treat

cardiac conditionsNon-exclusive license agreements with Allergan and

Bayer-Schering

Research tools can be commercialized!

Success Stories - Licensing

Circle Cardiovascular ImagingCalgary-based company selling cardiovascular

imaging software based on Dr. Matthias Friedrich’s technology

Spun out of Innovate Calgary’s company creation program

17 staff, product installed in over 45 sites in 12 countries, raised over $4.3M in financing www.circlecvi.com

Success Stories – Company Creation

Life Science Technology Start-Up

Parvus Therapeutics Dr Pere Santamaria Innovate Calgary provided $230,000 for proof of concept

and IP portfolio development In-kind resources provided: salary (EIR, manager), back office

support etc. Leveraged $2.35 million in additional non-dilutive funding

AHFMR, CIHR, JDRF, NSERC, NRC-IRAP, NanoBridge, NanoVenture Prize 2012, AITF

Issued patents in US, China, NZ. 13 Patents pending in Japan, Aus, Can, Isr and Europe

Currently Seeking 1st round VC funding for preclinical development www.parvustherapeutics.com

Success Story: Company Creation and Licensing

Diagnostic and Therapeutic Devices for Sleep Apnea Dr. John Remmers

One of the first scientists to identify sleep apnea Founding father of the Continuous Positive Air

Pressure (CPAP) device, which was successfully licensed by Innovate Calgary

Licensed exclusively by Innovate Calgary to an international company

More recently Zephyr spun out of Innovate Calgary’s company creation program

www.zephyrsleep.com

Our Licensing Team

David Reese, MSc, MBAJessie Kubes, PhDRobert Carruthers, MEngRaja Singh, MD, PhDChris Nicholls, PhDJim Wilson, PhDRishi Batra, MEngQuang Tran, PhDAndrei Edwards, MBA, JDAngelo Nwigwe, BSc, MBT

Company Creation

David Edmonds, Executive-in-ResidenceFrom IP to Company

28

Company Creation (CC) – What we do

We help commercialize very early stage technologies in Southern Alberta through: Identifying talented inventors with

novel technologies and large market potential;

Injecting management, expertise and “starter capital”;

Launching a new company and taking a meaningful ownership stake;

Accelerating the opportunity, through value-added services;

Attracting outside funding, recruiting Boards and senior executives, and “spinning out” the company.

29

Our Niche: Funding and Services Gap in the Alberta Tech Sector

VC’s / Public Market

Angels / AVAC /

Accelerate Fund

Gov’t Grants / “Love” Money

Innovate Calgary

CC

Concept / Early

R&D

Later Stage

Revenues

Early or No

Revenues

Prototype / Proof of Concept

30

Technology Focus Includes

Energy Generation & Storage

Alternative Energy

Software ElectronicsMicro-Nano

31

Our Team

Executives and Entrepreneurs-in-Residence PhD, BEng, BSc, MBAs Founders of 15 start-up companies Raised over $110 million in private and public markets Over 50 years experience as CEOs Managed over 1000 employees

Portfolio Managers Engineers, Scientists, and MBAs Focus on opportunity identification and management

Analysts Scientists, Engineers, Marketing, Finance, and IP

Entrepreneur Backgrounds

Stace Wills: VP Company Creation – ex-Elluminate, co-founder Accolade Capital

Dave Edmonds: EIR (Oiltech and ICT) – founder of Burntsand, Soft Options and other startups

John Lowe: EIR (ICT) – founder of Poynt, The Advisory Group and other startups

John Fallavollita: EIR (Cleantech) – founder and ex-CEO of IOSIL Energy Corp.

Jeremy Krol: Manager, Company Creation – ex-Jennings Capital

David Yiptong: Manager, Company Creation – ex-Nortel Networks

33

Our Advantage

Patient capital / earlier-stage focus: We play where most investors won’t

accept the risk Sustainable model:

Company creation costs partially offset by licensing and building revenues

Close ties to southern Alberta academic research community

Complementary to, not competitive with, private industry: We expand angel/VC deal pipeline

34

Our Portfolio

10 private companies, mostly based in Calgary

Equity and/or debt participation

35

Building Winners

Innovate Calgary raised $1.75M in angel/VC financing and grants. 20 new distributors on board.

Former Company Creation company -- recently raised $3M+ in VC financing. More than doubled revenues this past year.

Therapeutic targeting auto-immune diseases including T1D. Raised ~$3 M in grant funding.

36

From the Trenches...Pure Startups

Stage 1: IP Assignment Sponsored Research Agreement between U. of Calgary

engineering chair and 2 large, private companies “Clean” IP title transfer to NewCo

Stage 2: NewCo Launched Incorporation Starter cash provided / grant applications filed Board of Directors and Industry Advisory Board

Stage 3: Off to the Races New patents filed From bench to field trails

37

From the Trenches... The “Orphans”

New Talent Added: Innovate Calgary “mentor” (EIR) – David Edmonds New Board and management New business plan and financial model

Financing Closed: $800,000 from private (angel) investors $900,000 from institutional investor $50,000 from government grants

Strengthening IP: Mapping out overall IP Strategy

Next Phase…: Currently working with Apple on product

integration/distribution

38

Sample of Technologies in our Pipeline…

Micro-Nano Electronic technologies in the solar energy space

Novel materials and processes for EV battery systems

Novel materials for oil well diagnostics

39

Why Innovate Calgary to Create a Company?

MoneyManagementMomentum

Challenges Innovate Calgary can Assist with

Experienced in all aspects of technology transfer and commercialization

Commercialization risk taken on by us i.e. patent and marketing

expenses Ensures liability protection for

inventors and the University Work with University Intellectual

Property terms to negotiate on behalf of researchers

We protect your academic freedom Allow researchers to focus on their

research

41

Questions & Discussion

How can U of C inventors and Innovate Calgary partner together to build winning

Alberta companies?

Connect with Us

Innovatecalgary.com403.284.6400