CAUBO David Cox, CEO June 26, 2007

TEC Edmonton: The Genesis 2004 ILO Deal Gen, Venture Pz

TEC Edmonton: Programs Technology Transfer Company Development Venture Prize Deal Generator TEC Centre 2007

What’s new about TEC Edmonton? 1. Unique Joint Venture between University and Municipality 2. Regional focus: we want to capture more value from regional R&D and keep it in the region 3. Regional hub for public and private-sector alliances

Who funds TEC Edmonton? University of Alberta: $1M per year (min) Province: $2M over 5 years Federal Government: $2M over 5 years City of Edmonton: $5M over 5 years, plus $7M towards Bay purchase/RTF Other agencies: AHFMR, CIHR, CTI… Private-sector sponsors: 26

‘Organizations 101’ First make sure you are doing the right things…. (Effectiveness) (Efficiency) And then try to do them right…

Doing the right things New joint venture changed the focus: more company creation and development The philosophy is to capture the value of R&D occurring in the region, for the region

Doing the right things New joint venture changed the focus: more company creation and development The philosophy is to capture the value of R&D occurring in the region, for the region And…Crank up the volume!

Doing the right things: Get our priorities straight 1. Transfer inventions from local researchers to local companies 2. Create new companies in the region 3. License inventions to companies outside the region This is a significant departure from normal practice

Doing the Right Things… We have begun to ‘cast the net wider’ to increase the supply of: Intellectual Capital Human Capital Facilities Social Capital (connections) Financial Capital

Sponsored Research UofA ($Millions)

Cast the Net Wider: Intellectual capital Working with non-UofA inventors – 1 st time ever in region New business relationships to increase deal flow – BioAlberta – TR Labs – Capital Health – NINT ‘Shake the trees’ in the faculties

Technology Transfer Measures and results IndicatorFY 2005FY 2006FY 2007 (Target) FY 2007 (Actual) Reports of invention US Patent applications US Patents issued 108 9

Spin off companies 71 active spinoffs Over 1,000 highly skilled employees 8 publicly traded firms – $1B market cap 86% of spinoffs are based in Alberta – 83% headquartered in Edmonton

New start up companies April 2007 CompanyStatus Rehabtronics Inc.Established BioLipids Inc.Established i-LOC Inc.Incorporated DRAXWARE Inc.Pending

Candidate start ups April 2007 ‘Company’Status Ultrasound BiotechUnder development EZ SeerStudent entrepreneur prog. MOJOStudent entrepreneur prog. Picomole (external)Term sheet OncometabolicsUnder development COMPRU (external)Under development

Cast the Net Wider: Human Capital Beefing up the Company Development team Key ingredients – Executives-in-residence 4 in place Up to 3 more to come – Market Analysts 2 in place, plus intern – Commerce-savvy staff

Cast the Net Wider: Social Capital VenturePrize – Province-wide business plan competition – Record-breaking year all round Deal Generator – Now Canada’s largest Angel network – 9 forums to showcase groomed high-growth tech firms, $10M in offers of capital Ingenuity Enterprise: $3.6M province-wide collaboration with UTI (Calgary) Record activities in networking and outreach events

Venture Prize deal flow indicators, cf. same time last year IndicatorMay 06May 07 # Participants # Participants mentored2229 # Sponsors2126 Sponsor $ (private sector)59,00066,000

Cast the Net Wider: Social Capital VenturePrize – Province-wide business plan competition – Record-breaking year all round Deal Generator – Now Canada’s largest Angel network – 9 forums to showcase groomed high-growth tech firms, $10M in offers of capital Ingenuity Enterprise: $3.6M province-wide collaboration with UTI (Calgary) Record activities in networking and outreach events

Deal Generator StrategyMeasure06/07 Target06/07 Actual Increase Access to Capital for start ups Investment $ into TEC Edmonton companies $8MM offers $4MM closed $9.5MM offers $724K closed

Cast the Net Wider: Social Capital VenturePrize – Province-wide business plan competition – Record-breaking year all round Deal Generator – Now Canada’s largest Angel network – 9 forums to showcase groomed high-growth tech firms, $10M in offers of capital Ingenuity Enterprise: $3.6M province-wide collaboration with UTI (Calgary) Record activities in networking and outreach events

Ingenuity Enterprise A program to increase entrepreneurship in Alberta $3.6M program now underway – EIRs, Student Entrepreneurship & business plan competition, outreach, graduate innovation Funded by Alberta Ingenuity Planned, managed and executed jointly with UTI (Calgary) Management Board in place – Includes 3 external expert members

Cast the Net Wider: Social Capital VenturePrize – Province-wide business plan competition – Record-breaking year all round Deal Generator – Now Canada’s largest Angel network – 9 forums to showcase groomed high-growth tech firms, $10M in offers of capital Ingenuity Enterprise: $3.6M province-wide collaboration with UTI (Calgary) Record activities in networking and outreach events

TEC Edmonton connects region Private Sector TEC Edmonton is a regional hub that connects “agents” supporting innovation through referrals and collaborations. Partnerships help make TEC work.

Cast the Net Wider: Facilities Give our start-ups a home – Research Transition Facility, soon to be ‘TEC Centre’ Nourish them – Company Development services Extend our reach: new alliances with: – Edmonton Research Park (ERP) & ATC – National Institute for Nanotechnology (NINT) – Northern Alberta Business Incubator (NABI) – NAIT Duncan McNeill Centre for Innovation

Cast the Net Wider: Facilities TEC Edmonton is moving off campus Occupying entire 4 th floor of Enterprise Square in October 2007 TEC Edmonton and about 20 tenants to relocate Funding for Bay Building redevelopment: – City of Edmonton ($7.5M) – Province of Alberta ($15M) – U of A ($49M) – Government of Canada ($15M)

Cast the Net Wider: Financial Capital - Help technology ventures access capital Prepare them, polish them, present them – Groundbreaking new AHFMR grant Unique Funding Agency Consortium very active Deal Generator facilitated $9.5M in financing offers VenturePrize awarded $210,000 (most ever) in cash and in-kind development support on May 3 Seed fund

Doing Things Right Business – savvy and experienced management team Sound strategic plan and business processes Solid financial management and controls – 2006/07 revenues ($5.2M) matched by expenditures – First ever audit in May Contemporary governance – Private sector – led Board – Governance based on TSX model

Members of the TEC Edmonton Board Gary KachanoskiVP(Research), UofA Allan ScottPresident & CEO, EEDC David CoxCEO. TEC Edmonton Bob TeskeyField Law Nancy HarrisonFormer VC (Ventures West) Wayne KarpoffCTO, Yotta Yotta Rich CaseyFormer US Biotech CEO Chris LumbCEO, Micralyne Bruce JohnsonFormer CEO Intuit Canada Doug MaleyADM, Western Diversification

Challenges? Managing the interface with the stakeholder organizations Managing a high rate of growth Supply of management expertise Managing founder’s expectations

Questions?