1. Nanofragrance all day long
Final Evaluation – Spin-off in Chemistry
Bouquet
Nanofragrance all day long
Christopher Ehlert Łukasz Czekański Leily Javidfard
Inês Rocha Stéphane Vranckx Aleksandra Zielińska

2. Our know-how: Nano-encapsulation
Large variety of potential applications, including cosmetics
New (unpublished) results from REQUIMTE (Porto University)
Completely safe / bio-compatible
Lukasz
Similar patent: (European Patent A1)

3. Our product: Spray-on perfume nanocapsules
May be used on clothing or directly on skin
Safe on contact and by inhalation
Doesn’t stain fabric
Delivers perfume:
Gradually during the day thanks to natural friction and nanocapsule permeability
Whenever desired by gently rubbing the skin or fabric

4. Our market: Brazilian middle class
Biggest market for cosmetics million US$ and growing
« Social media capital of the world » (> 90 million regular internet users)
Strong disposition to buying online
Online advertisement and sales
Large middle-class market willing to pay ≈100 € per 50 mL of perfume
LEILY
Sales of perfumes showed a strong growth in Brazil in recent years. Now, in 2010, the country sold US$ billion in the year (retail value) in this market, making Brazil the largest consumer market of perfumes in the world, passing ahead of the USA, which sold US$ 5,347 billion in 2010, revealed the international agency for research and analysis firm Euromonitor.
REALLY big growth of internet use in Brazil:
But in Brazil, Facebook time grew 208% to 535 minutes over the same period. Meanwhile, the average time spent per YouTube visitor in Brazil grew 5% to 140 minutes, even as it dropped 3% to 161 minutes world-wide.
Facebook Inc. has some 65 million users in Brazil, which makes it the company's second largest market after the U.S. by number of users, according to social-analytics company Socialbakers.
The research firm eMarketer Inc. says that spending on online ads in Brazil will double to $4 billion over the next four years. So far, Brazilian consumers have shown an unusual willingness to make purchases online using credit cards.
« Brazil is already the largest fragrance market in the world », Cosmeticos.br (2011) « Breaking into Brazil », Laura Snoad, Marketingweek.co.uk (2012) « Brazil: A Social Media Marketers' Gold Mine », Christian Arno, Socialmediatoday.com (2013)

5. Our model However, high Brazilian import tax Production in Brazil
R&D in Portugal:
Research infrastructures
Need to buy a fragrance
Need for spray bottles, …
Need to build a network!
LEILY
Sales of perfumes showed a strong growth in Brazil in recent years. Now, in 2010, the country sold US$ billion in the year (retail value) in this market, making Brazil the largest consumer market of perfumes in the world, passing ahead of the USA, which sold US$ 5,347 billion in 2010, revealed the international agency for research and analysis firm Euromonitor.
REALLY big growth of internet use in Brazil:
But in Brazil, Facebook time grew 208% to 535 minutes over the same period. Meanwhile, the average time spent per YouTube visitor in Brazil grew 5% to 140 minutes, even as it dropped 3% to 161 minutes world-wide.
Facebook Inc. has some 65 million users in Brazil, which makes it the company's second largest market after the U.S. by number of users, according to social-analytics company Socialbakers.
The research firm eMarketer Inc. says that spending on online ads in Brazil will double to $4 billion over the next four years. So far, Brazilian consumers have shown an unusual willingness to make purchases online using credit cards.

6. Locations and collaborations
Portugal academic research:
Professor Ana Cristina Freire
Portugal cosmetic companies:
Castelbel (distribution to Brazil!)
ACH.Brito
Preliminary contacts in Brazil:
Patrícia Sgarbi Lima, Cosmetic (Natura)
Ruandro Victor Knapik, Representative R&D (Boticarío Group)
Sales of perfumes showed a strong growth in Brazil in recent years. Now, in 2010, the country sold US$ billion in the year (retail value) in this market, making Brazil the largest consumer market of perfumes in the world, passing ahead of the USA, which sold US$ 5,347 billion in 2010, revealed the international agency for research and analysis firm Euromonitor.
REALLY big growth of internet use in Brazil:
But in Brazil, Facebook time grew 208% to 535 minutes over the same period. Meanwhile, the average time spent per YouTube visitor in Brazil grew 5% to 140 minutes, even as it dropped 3% to 161 minutes world-wide.
Facebook Inc. has some 65 million users in Brazil, which makes it the company's second largest market after the U.S. by number of users, according to social-analytics company Socialbakers.
The research firm eMarketer Inc. says that spending on online ads in Brazil will double to $4 billion over the next four years. So far, Brazilian consumers have shown an unusual willingness to make purchases online using credit cards.

7. Locations and collaborations – Portugal
Collaborations with other institutions
Material Center of University of Porto (CEMUP)
Dr Carlos Moreira de Sá
Electronic Microscopy Unit (UME)
Dr. Pedro Tavares
Centre for Nanotechnology and Smart Materials (CeNTI)
Eng. Ana Ribeiro
INÊS
Nanosctrutured Material and nanotechnologies Laboratory (NanoLab)
 Eng. Patrícia Carvalho 
Colep
 Eng. Sofia Costa 

8. Business Plan Family Friends Researcher’s Grants Proof of concept
Patent
Prototype
Manager
Accountant
Scale-up, production
R&D
Lawyer
Improve the team
Investors
INÊS
Scale-up
Market

9. Funding, collaborations and contests
Invention
Innovation
Transfer of Technology
Incubators
Contests

10. Skills needed in our spinoff
Person
Formation
Management
Inês Rocha
PhD in Physical Chemistry
Erasmus for Young Entrepreneurs
Accounting
Christopher Ehlert
PhD student in Theoretical Chemistry
Masters in Economics
@ Solvay Business School
R&D
Łukasz Czekański
PhD student in Organic Chemistry
Finishing his PhD
@ Adam Mickiewicz University
Mass production
Stéphane Vranckx
PhD student in Physical Chemistry
2nd year Master in Industrial Chemistry
@ École Centrale Paris
Sales/Marketing
Leily Javidfard
SerpChem student
Formation in Marketing Communication
@ CAM Foundation (Online course)
Public relations
Aleksandra Zielińska
Master in Chemistry and Cosmetology
Contact with relevant companies,
Possible internships
Laws / Regulations
To be hired
N/A
Christopher
We did a assessment of the roles necessary in this kind of spinoff and of the
→ Hire someone with knowledge of relevant laws and regulations in Brazil and Europe

11. Perspectives Marketing targets: travelers
Beyond internet sales in Brazil, expand to:
World market
Sales in shops
R&D:
Other applications of nanocapsules

12. Acknowledgments
We thank all those who helped us build and improve this project through constructive discussion:
Salvatore Majorana
Cristina Freire
All professors of the SoSMSE school

13. Additional information

14. Why create a spinoff?
Interesting research result with practical application
Potentially big return on time/money investment
Even in case of failure, incredible professional experience:
Intimate knowledge of the inner working of a business
New experiences, far from usual academic work
Personal development
Create our own network

15. Intellectual property
Nanocapsules (unpublished research result) = our main intellectual property
Patent the process of encapsulating products in this specific kind of nanocapsules
Protection of our original results
Possible licensing
Later on: potential potenting of new processes
Logo, commercial name, … : to be trademarked
Patents should cover at least Europe and Brazil
European Patent A1 European Patent B1 European Patent A1

16. IP protection - Why not trade secrets?
Often used by small companies instead of patenting, but:
High risk of accidental or voluntary diffusion (if somebody leaves the company for a higher-paying job, …)
Our original results are our biggest asset
Need to be protected, even at high financial cost
In Brazil, Europe, …

17. Our team Small company  Specific roles, with flexibility
Christopher
Łukasz
Leily
Inês
Stéphane
Aleksandra
Management
Accounting
R&D
Mass production
Sales/Marketing
Public relations
Laws / Regulations
Defined roles, but with some flexibility (small company)
Complementarity of our team
Young and dynamic, already used to working together efficiently
Common frame of thinking (chemists) but with very different and complementary specialties, interests and personalities
Small company  Specific roles, with flexibility
Complementarity of our skills with slight overlap
Allows for temporary replacement of one person

18. Why PhDs? Experience in research Strong problem-solving skills
Used to work in multicultural and multidisciplinary teams
Adaptative and flexible
Able to see very long projects through
Fast learners with good organizational, time management skills
In our case: very diverse expertise (nanomaterials, organic chemistry, …)
« Un docteur? Une vraie plus-value pour l’entreprise! », References.be (2011)

19. Locations and collaborations – Portugal
Requimte
Semi-private laboratory working in collaboration with Porto University
Use of their infrastructures for our initial R&D
Master and PhD Students with their own grants
Contact:
Professor Ana Cristina Freire
INÊS

20. Spray manufacturers
Manufacturer of cosmetics, personal care, beauty, homecare and consumer healthcare products

21. Fragrances Most perfume brands don’t produce their own fragrances
Bought from specialized companies!
Possible creators of our fragrance:
Castelbel
Givaudan
Firmenich
IFF
Symrise
Takasago …
« Flavor & Fragrance Industry Leaders », Leffingwell & Associates

22. Some other applications of nanocapsules
Cancer treatment: Water soluble polymer shells that deliver directly into the nucleus a protein that only kills cancer cells
Self-healing materials: healing of cracks in microelectronics, polymer coating, …
Food: modification of textures, flavorings, colorings, shelf-life, …
« Nutraceuticals »: encapsulation in lipids or polymers of substances that enhance nutrition …

23. Composition of the nanocapsules
General name for capsules of 10 nm nm
Various polymers:
Polybutylcyanoacrylate …
Lipids

24. Health issues Possible cause of allergies
Uncertainties about health effect
In the US: products containing nanocapsules need to be FDA-approved
Likely reason why the « big names » didn’t commercialize nanocapsules-based perfumes
«What are potential harmful effects of nanoparticles? », European Public Health Gwinn, M. R.and Vallyathan, V. Environ Health Perspect December; 114(12): 1818–1825.

25. Health issues (allergies, uncertainty…)
Special care will have to be taken to ensure respect of health regulations
Health effect depends on the size, composition (esp. Surface), and possibly shape of the nanoparticles
For the purpose of this work: assumed to be solved
«What are potential harmful effects of nanoparticles? », European Public Health

26. Biggest causes of spinoff failures
Too focused on R&D, immature technology
Lack of entrepreneurship / finance experience…
Immature here = not ready to be commercialized

27. Biggest factors increasing spinoff success
Innovative product / production process
Entrepreneurial and managerial experience
Network of support and expertise
Joint ventures with other companies
Establishing professional (non-academic) management
« Predicting Spinoff Success », Chris Hayter , New York Academy of Sciences (2013) « Success Factors of Corporate Spin-Offs », Alexander Tübke (2010) - ISBN-10:

28. Inês Rocha: Manager Nearly finished Coordinate the R&D the PhD
Potential funding
Experience in leading
small scientific groups
Create business plan
Management skills
Knowlegde in
nanomaterials
Coordinate
cooperations
Erasmus for
Young Entrepreneurs
Portuguese language
Leadership on
organization meetings

29. Łukasz Czekański: R&D Break down complex problems into simpler parts
Production of original
research results
Resolution of original
problems
Organic chemistry
Experience in research
Nanocapsule synthesis
Analytical chemistry
Quality management
Finish Ph.D.
(1 year)
Teaching
and communication
Contribution to
mass production
Flexible
and adaptative
Set the salaries

30. Christopher Ehlert: Accountant
Break down
complex problems
into simpler parts
Calculate business
predictions
Commercial accounting
principles
Calculate the price
of the product
Mathematical
knowlegde
Experience in finance
Order machines
Perform simulations
Acquire money
Masters in Economics
Solvay Business School
(1 year)
Analyse and order
numerical data
Reduce the cost
Stop Ph.D.
Use open source
software
Set the salaries

31. Leily Javidfard: Marketing and sales
Knowledge of R&D
Polymer engineer
Specialized in coatings
Experience in marketing
Effective marketing
Sales engineer experience
(1 year at Resinfam)
Product benchmark
Marketing Communication
CAM Foundation
(Online course)
Communication skills
Exportation strategies
Creativity
Online advertisement
Finish Master

32. Stéphane Vranckx: Scale-up, production
Problem solving
(esp. Optimization)
Private sector experience
(6-month internship)
Scale up production
Teamwork, Leadership
Minimize production costs
Experience in scale-up
and mass production
Perform simulations
Private sector experience
2nd year Master
École Centrale Paris
« Help to decision
and optimization
of Industrial
and Logistic Systems »
Oral and written
communication
Production team
management
Nearly finished Ph.D.
in Physical Chemistry

33. Aleksandra Zielińska: Public relations
Get in contract with other people/companies
Cosmetic, chemical and medical knowledge
Build network Get funding
Convince other people
Handle with different mentalities
Good communicator
Responsible for the chemical materials
Foreign languages
Contact cooperating
companies, interships
Composition of fragnances
International experiences
Get overview of the
market
Quality management

34. Skills sought for in our new recruit
Required knowledge
Additional assets
Patent law
Europe, Brazil
Safety regulations
for chemical companies
Experience with other
Spinoffs/startup
Cosmetic regulations
Europe, Brazil
Taxation
Portugal, Brazil
Experience in cosmetics
or chemicals companies
English
Portuguese/Brazilian
Knowledge of Brazilian
culture and market

35. Technical feasability
We assume we have original and encouraging results for a new kind of biocompatible (safe) nanocapsule
« Proof of concept »
Unpublished results  Patentable
The idea of using nanocapsules containing perfumes and other cosmetics has been investigated by other cosmetic companies:
L’Oréal
Gemm’innov …
European Patent A1 European Patent B1 European Patent A1

36. Perfume sales Places where perfumes are purchased (2004):
72% in specialized shops / grands magasins
18% in supermarkets
9% by direct sales
1% in pharmacies
Current trend: increased sales through the internet, esp. in Brazil
PPT Presentation by Loïc Torres, Master in Chemistry (provided by Ivan Coste-Manière)

37. Distribution Initially through the internet
Unusually high volume of internet shopping in Brazil
High internet penetration in our target demographics
Online ads, viral marketing campaign, …
Later: through usual distribution channels
Specialized stores, supermarkets, …
Network of contacts and collaborations
PPT Presentation by Loïc Torres, Master in Chemistry (provided by Ivan Coste-Manière)

38. Bouquet Marketing Selling arguments: High-tech Unique properties
Made in Brazil
Name: « Bouquet »
French word, but also used in English, Portuguese, German, …
Used both for wines and flowers
Strong association to good smells/tastes
Association to France, « luxury » products, people with refined tastes, …
Bouquet

39. Marketing – Celebrity endorsements
Focus on fashion models, actors and sportspersons
Upcoming Olympics / World Cup
Most popular celebrities in Brazil:
« Brazilian celebrities List », lists.lucywho.com (2013)

40. Sales Initially: internet-based B2C model
Large internet penetration in our target demographics
Unusual predisposition to online shopping
Online advertisements
Viral marketing
Later: transition to retailers
Possibility through Castelbel?
Portuguese company distributing in Brazil
Requires a network of Brazilian companies
«Brazil's E-Commerce Is Booming » Ricardo Geromel, Forbes.com (2012)

41. Brazilian market analysis
Population of Brazil: ≈ 195,000,000
Lots of young people with:
Internet
Smartphones (> 1/inhabitant)
Conversion rate of the Brazilian Real (R$):
≈ €
≈ US$
«Salary Survey in Brazil », Salary Explorer, (2013)

42. Brazilian market analysis
Average salary:
Best paying jobs:
«Salary Survey in Brazil », Salary Explorer, (2013)

43. Brazilians and internet
Largest number of internet users in South America (and growing)
Fast adopters of social media
Unusually strong tendency to buy online

44. Characteristics of our target market
Perfume users looking for something new
Live in urban areas, esp. in hot countries
Not necessarily « rich », but ready to spend good money on good perfume
Unwilling/unable to discreetly put perfume during the day
Includes men who want to smell good, without willing to be perceived as feminine
Knowledgeable about style

45. Potential future marketing targets
Business(wo)men
Need to feel fresh even when they have a lot of meetings in a row (esp. in hot countries)
Travelers
Need to feel fresh during long plane travels… but cannot bring liquids!
Large number of travelers expected in coming years: World Cup (2014), Olympics (2016)

46. Packaging Sets the product apart, makes it look « classy »
General ideas of shape
Evoking the high-tech nature of the product (Molecules…)  Men
Evoking its unique properties  perfume that works « all day long » (Hourglass, …)

47. Competition: Perfumes in Brazil
Best feminine perfume sales in Brazil:
J'adore (Dior)
Carolina Herrera (Carolina Herrera)
Flower by Kenzo
Hypnose (Lancôme)
Euphoria (Calvin Klein)
All in the ≈ 100 €/50 mL price range (299 R$/50 mL)

48. (Pre-)Seed capital Small contribution from F&F&F Contest
Exposure to potential investors
Potential prize money
Erasmus
Grants from researchers

49. Erasmus Entrepreneurship
Exchange european program
Goal:
Have young entrepreneurs learn from experienced ones from the EU
Develop skills to run their businesses

50. Start of our network General information about spinoffs:
Salvatore Majorana
Academic with link to Portuguese cosmetics:
Professor Ana Cristina Freire
Portugal cosmetic companies:
Castelbel (distribution in Brazil!)
ACH.Brito …
CEO of Castelbel = friend of Ana Cristina Freire