FINANCING THE KNOW- HOW TRANSFORMING RESEARCH RESULTS INTO

FINANCING THE KNOW- HOW TRANSFORMING RESEARCH RESULTS INTO PROFITABLE BUSINESSES Yolanda Falcón García Unirisco Galicia PAXIS PROJECT

INDEX • Venture Capital activity in Spain • Experience of the Galician Universities in Seed Capital: UNIRISCO GALICIA • A national model of University Venture Capital : UNINVEST. PAXIS PROJECT

VENTURE CAPITAL IN SPAIN. (some data) Total amount invested ( thousands Euros ) PAXIS PROJECT

VENTURE CAPITAL IN SPAIN. (some data) Average investment per transaction (thousands Euros) PAXIS PROJECT

VENTURE CAPITAL IN SPAIN. (SOME DATA) Stage distribution of investments by number of investments 1º semester 2004 PAXIS PROJECT

VENTURE CAPITAL IN EUROPE Investment breakdown per development stage year 2004 PAXIS PROJECT

UNIRISCO GALICIA, S. C. R. . S. A. • Venture Capital Society promoted by three Galician universities. • Aimed at investments in projects arose in the university community. • Covers the financial gap of small/medium-sized projects. • Search of an alternative to the university technology transfer mechanisms. PAXIS PROJECT

What does Unirisco do ? . • Participates temporarily in the capital of the company • Shares business risk granting participation loans • Provides assessment services to participated companies PAXIS PROJECT

Sources and Shareholders Sources Managed funds 2000 1. 2 M€ 2003 3. 0 M€ Shareholders Universities (*) Private companies Banks 2000 59% 9% 32% 2003 24% 36% 40% (*) Universities : Santiago, Vigo and A Coruña PAXIS PROJECT

Some investments GALCHIMIA Custom synthesis for the pharmaceutical and chemical industry. USC ADVANCELL Development and application of in vitro cellular technology and pharmaceutical nanotechnology for research of active principles, medicines, cosmetics and biotech. Univ. of Barcelona, Valencia and USC. KERAMAT Development and manufacturing of ceramic biomaterials for human use as osseous implants (traumatology, neurosurgery). USC IMMUNOSTEP Development and manufacturing of reagents for biomedical and biotechnological research and clinical diagnostic using flow cytometry. CIC. USAL PAXIS PROJECT

Conclusions Unirisco’s regional experience • Need of a specific spin-off financing mechanism. • Will of institutional cooperation: universities, business groups and financial institutions. • Renunciation to a local behaviour. • Need to work with a critical mass of business projects: national field. • Demand of financing for projects of other Spanish universities. PAXIS PROJECT

A national model of University Venture Capital • Need of reaching a critical mass of projects/ Universities. • Promote the OTRIs as tools of business and technological promotion. • To exchange experiences in the area of setting up technology-based companies. • To share a network of technological analysts. • To share a specific financial mechanism for academic “Spin-Offs”. PAXIS PROJECT

A National model of University Venture Capital UNINVEST, SGECR, S. A. I+D UNIFONDO, FCR • • • UNIRISCO Galicia Universities (promoters) ENISA (MINISTRY OF INDUSTRY) To manage the Found assets. Shareholders Institutional investors CDTI and European Investment Found (negotiating) To finance technologybased companies PAXIS PROJECT

Uninvest Shareholders 1. 2. 3. 4. 5. 6. 7. 8. UNIRISCO Galicia • Universidad de A Coruña • Universidad de Santiago • Universidad de Vigo Universidad de León Fundación Universidad de Valladolid Universidad de Salamanca Fundación Torres Quevedo Universidad de Cantabria 16 universities + CSIC 9. Universidad Politécnica de Valencia 10. Fundación Universidad de Alicante 11. Universidad Miguel Hernández (Elche) 12. Universidad de Extremadura 13. Universidad de Cádiz Universidad Carlos III de Madrid 14. Consejo Superior de Investigaciones Científicas Parque Científico de Madrid (Autónoma y Complutense) 15. Empresa Nacional de Innovación (ENISA – Mº de Universidad de Valencia Industria) PAXIS PROJECT

What is Unifondo I+D ? • Venture capital found managed by UNINVEST to invest in the capital of companies based in know- how and technologies developed in the Spanish Universities. PAXIS PROJECT

Investment Policy • Financing the establishment and development stages of the companies. • To help in the search of additional financing (loans, grants, . . ) • To provide assessment services to the participated companies • To provide advice in the technological transfer process. PAXIS PROJECT

Investment Policy BUSSINESS INITIATIVES WHICH: • Use know- how and technologies developed in the Universities. • Promoters involved in the business initiative. • Are based on a high technology component. • Have a rapid growth. PAXIS PROJECT

CONTACT DATA UNIRISCO GALICIA, S. C. R. S. A. Edificio CACTUS Campus Universitario SUR 15782 – Santiago de Compostela Tel. - 981 54 70 44 / 981 56 31 00 ext. 16250 Fax. - 981 54 70 77 e-mail. - cittjlm@usc. es PAXIS PROJECT