Hothouse/Programme Interaction Learning Outcomes, Value Creation & Value Capture

WE HELP … DIT Researchers Investors Businesses Entrepreneurs

What is Hothouse? The Technology Transfer & Innovation Centre at DIT Commercialisation Team Helps DIT staff and students commercialise their IP Helps businesses find new technologies, research partners Develop research funding Qualifies the commercial opportunity for DIT technology Protects DIT IP Incubation Team Helps entrepreneurs to start and grow businesses Helps investors find HPSUs Hothouse EPP supports 32 companies annually Typically ICT focus, some Life Science, Bio, CleanTech

Hothouse - Incubation

Enterprise Support Bodies  1 – 10 employees  Funding  Soft supports  No export requirement  Enterprise culture...  10 + employees  Early stage funding  Equity investment in High Potential Start-Ups (HPSUs) if...  Export focused  10 jobs  €1m in 3 years

Hothouse Funded by  Programme is a feeder for EI HPSU companies  HPSU = matched investment from EI & VCs/Angels  EI Development Advisor appointed to help mentor Pre-HPSU company  DA has +18 clients at any one time  EI actively funds VC funds also

Hothouse Venture Programme  Established 2001  A one-year incubation programme for early stage technology focused businesses  Aim to produce prospects for Enterprise Ireland  Based at Docklands Innovation Park (Bolton Trust)  Now on Hothouse 21!  300+ Hothouse alumni & participants

Start-Up Cycle Conceptualisation Validation Resourcing Implementation Growth Consolidation Feasibility Implementation Resourcing End Start

The Research Cycle Conceptualisation Validation Resourcing Implementation Growth Consolidation Feasibility Implementation Resourcing End Start

2009 Hothouse - Commercialisation 2010

DIT Mainstream Programmes Supporting Venture Creation and Commercialisation MSc Business & Entrepreneurship MSc International Business MSc Strategic Management MSc Technology Management & Innovation (Part time)

‘The Method’ Value creation Portfolio of Techniques to practice entrepreneurship Entrepreneur, team, and firm Serious games, observation, practice, reflection, cocurricular, design Practice, Self-knowledge, fit, action, do-learn, cocreation, create opportunities, expect and embrace failure Action (Neck, Greene (2011))

Effectuation What makes entrepreneurs entrepreneurial? Bird in the hand Affordable loss Leverage contingencies Patchwork quilt Control v Prediction The future is neither found nor predicted but rather made Effectual v Causal reasoning (Sarasvathy (2008))

Hothouse success stories

Evaluating New Technologies Most basic = is it a license or spin out? License = enabler, relatively small market, single technology Spin out = platform tech, large market, problem to solve, possibility of a team IP – prior art? Strength of patent? Outcome is a Feasibility Study, after -Initial patent search -Initial market research

Feasibility Study? Market Side Analysis: Validation of proposed market (are there others?) Market assessment – define addressable and primary attitudinal survey Define Key Geographies; Proposed Market Segments; market size and growth projections Industry trends Competitor analysis – SWOT analysis Potential Business Models Customer / User Questionnaire / Interviews Estimated sales per year

Feasibility Study, con’t Production Side Analysis: Depends on validation of perceived market Define key production & scaling parameters Review existing process &/or research results ID Industrial scaling requirements to meet estimated sales volumes Value chain analysis – insource / outsource etc Cost analysis; fixed costs, operational costs, ROI etc Regulatory environment – marketing, gov. Standards, changes NOW – Define the Business Case

Technology Options / A Nutraceutical Seaweed Drink Under Life Science 5x levels of bioactivity = weight loss / health drink Extraction from an abundant resource Extraction method patented (PCT) 1.Define the market need 2.Define the size of the opportunity 3.License or spin out? 4.Marketing / Sales plan

Technology Options / Audio Thumbnail Under ICT Automatically creates a thumbnail of music Picks out the chorus – in a song, album, or library Extraction method patented (PCT) Social Media plug in application 1.Define the market need 2.Define the size of the addressable market 3.Define the business case for a start up 4.Analyse revenue models

Technology Options / ProjecTable: an interactive digital interface Under ICT Analyses the point of touch on a surface – projection & sensors Research into the interface market shows it is crowded Novelty is the point of touch software – Method patented (1 st File) Applications in signage or ambient media?? 1.Define the market need 2.Find a problem (Innovation push) 3.Define the size of the opportunity 4.Licensee opportunities? 5.Industry interviews

Technology Options / Crypstic: an novel encryption software Under ICT Creates a multi-algorithmic keyless encryption Pen drive – just a platform, taking a cloud based approach Novelty is know-how 1.Define a niche high value (B2B?) application 2.Define the size of the opportunity 3.Define the customer need? 4.Licensee or spin out? 5.Business case

Technology Options / Audio Data protection Under ICT Creates a digital watermark which lives in an audio signal Applications in the music / download copyright space Regulatory applications? Novelty is know-how 1.Define the application / problem 2.Define the size of the opportunity 3.Define the customer need? Who pays? 4.Licensee or spin out? 5.Business case

Technology Options / Audio Data protection Under ICT Creates a digital watermark which lives in an audio signal Applications in the music / download copyright space Regulatory applications? Novelty is know-how 1.Define the application / problem 2.Define the size of the opportunity 3.Define the customer need? Who pays? 4.Licensee or spin out? 5.Business case

Technology Options / Pressure or Humidity sensitive Hologram Under Industrial A novel holographic polymer Can be individualised, show pressure points, change with humidity Applications in instrumentation space IP Patented (series of patents) 1.Define the size of the opportunity 2.Define the addressable market and segments 3.Define the customer need? Where is the problem acute? 4.Licensee or spin out? 5.Business case

Technology Options / Laser Doppler Vibrometer LDV Under Industrial Uses holographic optics Much lower cost than traditional models Applications in instrumentation / industrial measurement space 1.Define the addressable market and segments 2.Define the size of the opportunity 3.Define the customer need? 4.Licensee opportunities? 5.Industry survey

Technology Options / Wind and wave estimation software Under Clean Tech Uses a novel formula to better estimate wind velocity Size, velocity, topography all impact location of wind farms Applications in consulting / software space 1.Define the market size 2.ID the key players in the segment 3.Quantify the value proposition - B-C 2 =V OR B-(C+I) = V 4.Industry survey

Technology Options / Production analysis in Fermentation process Under Industrial Uses novel technique based on fractal analysis - know how Optimises fermentation process Automated analysis of digital images Could be delivered via software system 1.Analyse the size of the problem 2.Define the sectoral applications; brewing, pharma, etc 3.Recommend a high value niche 4.Delivery - License or spin out? 5.Industry survey

Technology Options / Stegocrypt: e-document authentication Under ICT Allows for authentication of e-documents, steganography Image encrypted and embedded in document Application education, security, etc (e.g. Diploma) Novelty is know-how 1.Define the sectoral applications 2.Define a value of this sectors – size of the problem? 3.Define the addressable market 4.License or spin out?