Investment seed & start-up funds as a catalyst for economic development & diversity

Paul FieldTechnology Transfer Manager

Qatar Foundation• Founded in 1995 by His

Highness the Emir Sheikh Hamad bin Khalifa Al-Thani

• Chaired by Her Highness Sheikha Mozah bint Nasser Al-Missned

• An independent, nonprofit organisation committed to the development of Qatar and its people

Qatar Science & Technology Park

• Home for international

technology companies• Incubator of start-up

businesses

Education City

Al Shaqab stud, ‘08

QF Housing

Hotel, ‘10

Commercialcentre, ‘10

Golf course, ‘10

Sports centre, ‘10

QF HQ

Schools• Qatar Academy• Bridge program

• The Learning Centre

Virginia Commonwealth University Qatar

• Graphic, fashion and Interior Design

Weill Cornell Medical College in

Qatar• Medical school

Texas A&M Universityat Qatar

• Engineering (4 streams)

Carnegie Mellon Qatar

• Computer science• Business

Georgetown University in Qatar

• Foreign service

Conventioncentre, ‘10 Sidra Medical and

Research Centre, ’10

• Treatment, teaching and research

Qatar’s R&D Growth• 2.8% of Qatar’s GDP to R&D activity• Education City Universities• SIDRA medical and research endowment

c.US$7bn• QNRF• Overseas attraction to first class organisations’

into region

Emerging Technology Centre• 12,000m2 over 2 levels + podium

• leases from 45m2

• incubation focus• cafes, shops, common facilities

• opens ‘07

Innovation & TechnologyTransfer Centre 1

• 1500m2 x 2 stories x 4 wings• leases of 500 – 6000 m2

• shell office and lab space• opens ‘07

Innovation & TechnologyTransfer Centre 2

• twin of ITTC 1 • opens ‘07

National Data Centre• “Tier 4” data centre

• IT services within and beyond EC• independently managed

• opens ‘09

Phase 1

Site of 120ha, Phase 1 is 35ha•controlled access and circulation

• underground parking• building management

Objectives• Promote applied research, technology

development and commercialisation in Qatar• Grow and diversify Qatar’s economy through

application of technology• Accelerate formation and growth of start-up

technology companies • Create high-value employment and development

opportunities, in particular for Qatar’s university graduates

QSTP Provides• Accommodation, Services, Support

– commercialisation programs• Dedicated facilities and services for R&C• Access to world-class research institutes

EconomicDevelopment

Management

Technology Fina

nce

Corporate Research

Proof of Concept Fund

Research Grand Challenge

New Enterprise Fund

Technology Venture Fund

MentoringEntrepreneurshipWorkforce Development

Qatar IP OfficePatent System & Laws

Investor Readiness Program

Research Networks

Support for commercialisation

Technology Transfer• The process of developing practical (commercial)

applications from the results of scientific research• The formal transfer of rights to use and

commercialise new discoveries and innovations

The funding issue in Qatar• Lack of investment finance to assist in forming &

developing technology related businesses• Financial community looking more favourably on

retail/property enterprise start ups• Will not meet macro economic diversity targets

The American Funding Phases

The Equity ‘Gap’• Harder to raise US$1m than US$100m

• More risk - often pre-revenue• more effort required - mentoring, hands-on role• Often idea through a committed academic• Time to liquidity - exit 5+ years

• Limited Seed/Start up funds in the region (Injazat, UAE)

“The Challenge for Qatar”(challenge for all !)

To ‘bridge’ the ‘gap’ and to provide a sustainable source of finance for

start up businesses

Adopt International Good Practice• Enterprise development funds provided by public

sector vehicle or a mix of public/private sector partners and match funding

• Pump-priming a Middle East VC industry

Private Equity required in MENA• Seed/Start-up funds Purpose is to refine, develop and market test IP,

prototypes or conceptsCharacteristics are non trading, no firm business

modelObjective to verify commercial viability, test route to

market & build management team

Opportunity Pipeline• Internationally university spin outs are an

emerging success story• Exponential growth in R&D leading to

commercial opportunities• Attraction of a growing economy• Opportunities of regional significance - e.g.

medical

UK Case Study• 191 active funds, 26% publicly backed• Over half of funds’ size is less than US$25m• Average investments p.a. 5• 50% specialist, 50% generalist• US$320m raised for university spin out activity in

2006• 35% of spin outs raise external finance• 7% of university spin outs have gone public or

been acquired

U.S. Market• US last 10 yrs US$12.6bn invested at seed stage• Over 5,000 university spin outs since 1980• MIT, Stanford• Organisations which have benefited overseas

include; Apple Federal Express, AOL, Google

Contactwww.qstp.org.qainfo@qstp.org.qa+974 492 7093