1. Introduction to Cambridge Enterprise
A presentation to the Korean delegation led by Professor Yang-Gon Seo
5 February 2007
Shirley Jamieson and Maggie Wilkinson
Tel: +44 (0)

2. University of Cambridge
University established in 1209
Students: 16,500 (11,600 u/g, 5,000 p/g)
20% from overseas representing 100 countries
Over 100 departments, faculties and schools
World Class Ranking (Shanghai Jiao Tong University 2006)
Harvard
Cambridge
Stanford
Berkeley
MIT
Caltech
Columbia
Princeton
Chicago
Oxford

3. University research funding
Total £270 million
Data for 2004/5

4. The Cambridge Phenomenon
University people and ideas are at the core of many new technology ventures
Over 1,000 innovation based companies
>500 in IT and >200 in the Life Sciences, the most rapidly expanding sectors
Nicknamed ‘Silicon Fen’
8% of all European venture capital invested in Cambridge
(Library House: first half of 2004)
University organisations have helped develop the infrastructure of the ‘cluster’
Trinity College: Cambridge Science Park
St. John’s Innovation Centre
Peterhouse Technology Park

5. Cambridge-MIT Institute
Joint venture between MIT and University of Cambridge
UK Government’s Department of Trade and Industry invested £65 million in July 2000
Sponsorship by industry, e.g. BP, BT, Fujitsu
Mission is to deliver education and research to enhance the competitiveness of UK economy
Cambridge Enterprise is responsible for commercialising IP generated in the University, and jointly with MIT

6. University of Cambridge and intellectual property
Subject to any funding agreements:
Researchers decide if they wish to commercialise their work
The University has the right to apply for registerable intellectual property rights (eg patents) generated by staff and these must be disclosed
Copyright in software belongs to staff, and can be assigned to the University
Students own IP they create on their own and which is without obligations to a sponsor
Cambridge Enterprise collaborates with researchers to license technology to new and existing companies, and helps people set up businesses and raise funding
Provides an option for inventors to commercialise IP independently of the University, subject to funding terms
University policy – updated Dec 2005

7. University revenue sharing from licensing technology
Net income (opt in)
Inventor(s)
Department(s)
University
First £100,000
90% 5%
Next £100,000
60%
20%
Above £200,000
34%
33%
Net income (opt out)
First £50,000
100%
Above £50,000
85%
7.5%
University policy – updated Dec 2005

8. “Cambridge Enterprise exists to help University of Cambridge inventors, innovators and entrepreneurs make their ideas and concepts more commercially successful for the benefit of society, the UK economy, the inventors and the University”

9. An integrated service for University staff and students
With inventors, we evaluate, protect, market and license intellectual property
With prospective entrepreneurs, we attract experienced management and investors for new companies. We also provide mentors, support and guidance, and seed funding
We provide an administrative service for consultancy: negotiating contracts and providing insurance cover

10. Business statistics
Invention disclosures Priority patent applications Licences and options granted Licence income Patent costs / reimbursement Spinouts
Start-ups assisted Consultancy contracts Consultancy income Staff
£3.33 million £626 / £293K
Cambridge Innovision, E-stack, OrthoMimetics, Psynova 28
82 £2.93 million 25
Data for 2005/6

11. 58 new patent applications
Licensing technology
Existing business
Form a business
Inventions
Software
Materials
Patenting
&
marketing
Commercial agreements
Due diligence & technology revenue
3 months
6 – 24 months
6 months – 20 years
Data for 2005/6
152 disclosures
58 new patent applications
61 agreements,
inc 4 spinouts
£3.33 million

12. Patents and copyright – basics
new
UK/Europe – first to file, no disclosure before filing
US – first to invent, grace period of one year from publication
inventive
industrial application
duration: 20 years from filing
registration by geographical territory
Copyright, eg in computer software
right arises on creation, no need to register
duration: life of ‘author’ plus 70 years

13. Intellectual Property – what CE does
Identification of valuable research results
Patent Filing
IP management
Identify commercial partners
Negotiate commercial deal
Manage the post-deal process
Asses evaluate
Patent management : we file over 40 new patent applications per year using
specialist firms of patent agents
During the evaluation/ protection of research result if we believe that a clear commercial or technical objective can be achieved, enabling the next step in commercialisation we can give advice on funds available like Follo-on Funds, Translation awards and PoC funds
we can give advice and maybe help you with follow on fund
IN ACCORDANCE WITH THE UNIVERSITY IP POLICY, AND COME BACK TO THAT IN A MINUTE
Securing commercial partners: we look for commercial partners committed
to bringing products to market.
Licensing: Many of our licensees are small and medium sized companies
with strong links with our academics. We seek long-term
mutually-beneficial relationship with our licensee.

14. Patent process Time/months Application stage Approximate cost
File UK application (priority date)
£0 – 5,000 12
File Patent Cooperation Treaty application
£5,000 approx 18
Publication
15 – 29
Searches and examination
£3,000 approx 30
National filings
£20,000 approx
Further examination
From £5,000
National patents granted
Annual fees (£hundreds)

15. Therapeutic antibodies Professors Herman Waldmann, Mike Clark and Geoff Hale, Department of Pathology, with University of Oxford and MRC
Monoclonal antibodies to treat diseases of the immune system
Work started in University in 1980
Cell line producing Campath assigned to NRDC in 1984, improved version for BTG in 1989
BTG licence to Glaxo-Wellcome, developed for rheumatoid arthritis, dropped in 1994
Re-licensed to LeukoSite (Boston) for chronic lymphyocytic leukaemia
LeukoSite bought by Millennium, joint development with Ilex. Genzyme bought Ilex in 2004
2001 Campath 1H (alemtuzumab) registered for use in US and Europe for chronic lymphocytic leukaemia. Now in Phase II clinical trials for treating multiple sclerosis and non-Hodgkins lymphoma
University’s contribution yielding royalties of several hundred thousand pounds

16. Medicines in development originating in the University
TRX1 an anti CD4 antibody in Phase 1 clinical trials for treating auto-immune diseases (TolerRx). Professor Herman Waldmann, University of Oxford
Pre-clinical
Chondroitinase for nerve regeneration after spinal cord injury (Acorda Therapeutics). Professor James Fawecett, Centre for Brain Repair
M3 protein for treating pulmonary fibrosis (Biotherapix). Dr Stacey Efstathiou, Division of Virology

17. Computational fluid dynamics software Professors John Denton and Bill Dawes, Engineering Department
Analysis of complex flow problems in turbo-machinery and jet engines
Source code licensed non-exclusively to leading engineering companies world-wide
Multi-million pound revenues achieved over nearly two decades
Cambridge Flow Solutions Ltd (1999) formed to use generic functionality to provide custom solutions to companies in other engineering sectors

18. Speech recognition software Professor Steve Young and Phil Woodland, Engineering Department
Created machine speech recognition software called Hidden Markownikoff Tool Kit for use in their research
Object code licensed widely
Exclusive licence to source code and marketing and development agreement with Entropic Inc (Washington DC) 1993
Entropic Cambridge Research Laboratory Ltd (Cambridge) 1995, funded by Amadeus and Oak Investors, 1999
Bought by Microsoft for multi-million dollar sum, 1999

19. Successful licensing case study
Antibody engineering technology with broad applicability to therapeutic antibodies
Scientific and commercial contact made with a US biotech by one of the inventors and Cambridge Enterprise in parallel
The inventors and CE worked closely
Successful licensing deal concluded
the technology is being broadly used by pharma and biotech
good financial terms

20. A selection of biotechnology companies formed by University of Cambridge staff and students

21. A selection of technology companies formed by University of Cambridge staff and students
BlueGnome Ltd
Statistical modelling software for drug -
discovery.
October 2001
Cambridge Display
Technology Inc
Application of light emitting polymers
July 1
Cambridge Flow Solutions
Ltd
Consultancy and provider of CFD software
February 1999
Cambridge Positioning
Systems Ltd
High accuracy mobi
le location solutions
system.com
October 1997
992
Cambridge Semiconductor
Ltd
Power Electronics
July 2000
CEDAR Audio Limited
Signal Processing
February 1989
Genapta Ltd
Next generation bio
photonics
July 2001
Granta Design Limited
Software for engineering materials IT
April 1994 - - -
Metalysis Ltd
Generic Electrolytic Processes
October 2001
Hypertag Ltd
Wireless
Information Access
December 2003
Plastic Logic Ltd
Development of Plastic Semiconductors
November 2000
ZinWave
Ltd
Unified wireless infrastructure
November 2002

22. Support for company formation
We help people build their team, and find out about legal, business and financial issues through surgeries and specialist workshops
Facilitate access to venture funds (including the University’s Seed Fund) in the UK and overseas
Incubator space
The CUE Business Creation Competition encourages people to try out their entrepreneurial ideas
Over 250 companies formed by University staff, alumni and students
‘Starting a technology company’ guide

24. Successful spin-out case study
Broad portfolio of IP and data relating to bio-markers for psychiatric disorders
Complex IP ownership issues
Sophisticated IP protection needed
CE worked with the PI to bring in advisors to assess the business opportunity
CE completed appropriate licences and other agreements to the new venture
New venture attracted funding from Cambridge Enterprise Seed Fund and an external Venture Capital investor

25. www.orthomimetics.com – a recent spinout
Products for treating cartilage, ligament and tendon injuries
Arose from a £2 million research project funded by CMI in the Department of Materials Science and at MIT
2 patents filed and funded by CMI
Andrew Lynn led the formation of the company
CE helped Andrew attract the founding team, and devise business strategy
On behalf of CMI, CE negotiated a field exclusive licence to OrthoMimetics.
Awarded £760,000 from the DTI’s Regenerative Medicine grant fund in June 2006

26. Cambridge Enterprise Seed Funds (CESF)
Total Capital - £10 Million for investing in companies started by University academics, students and alumni
University Venture Fund
Challenge Fund
Result of Government initiative,18 across the UK
“To enable Universities to access seed funds in order to
assist the successful transformation of good research into good business”

27. Cambridge Enterprise Seed Funds people www.challengefund.cam.ac.uk
Bill Matthews , Fund Manager
Nick Slaymaker , Technology Manager
Geraldine Rodgers , Biotech Manager
Peter Luebcke , Business Creation Manager
Penny Armstrong , PA/Office Manager CE Seed Funds

28. Cambridge Enterprise Seed Funds investment strategy
Pathfinder of up to £10,000
Concept of £60-80,000
Seed investments up to £ ,000
Take equity
Seat on Board for as long as holding 5% shares
Total invested to date £3.7 million
Total follow on funding raised £33.8 million
Grant income to companies £7 million
One realisation so far 40% return

29. Venture Fund portfolio

30. PSYNOVA LTD Challenge Fund portfolio Enval Innotec CamFridge SENTINEL
Cambridge
Lab-on-Chip
PSYNOVA LTD
Enval
The British
Stem Cell Registry
Innotec
SENTINEL

31. Cambridge Venture Partners (formed 2005) additional funding for early-stage businesses
Cambridge Enterprise Seed Funds and
3i - a world leader in private equity and venture capital
Acacia Capital Partners - an independent venture capital company investing in European early stage technology ventures
Amadeus - specialises in high-technology investments in Europe
Avlar - active investors in seed and early stage biotechnology companies
TTP - provides venture capital for early stage science and technology companies
Porton Capital -specialises in offshore mutual funds to provide development capital

32. Consultancy at the University of Cambridge
Dr Richard Jennings
Director, Cambridge University Technical Services Ltd.
Head of Consultancy Services
Tel + 44 (0)
Fax +44 (0)

33. Consultancy : provision of expert advice to external clients by University personnel
Part of University’s mission to contribute to society through application and dissemination of knowledge
“...one of the principle mechanisms for transfer of knowledge with practical application and thereby contributes to economic growth” ( UUK-AURIL, 2001)
“ Undertaking consultancy is of course a highly efficient way of using the expertise of universities for the benefit of industry and government, while at the same time honing the skills of the academic concerned” (University Report on IPRs 2003)
“Consultancy is one of the simplest ways for business to interact with universities and draw on their research. …In particular increasing consultancy may be one way to bring more companies into contact with universities” ( Lambert Report 2004)

34. Consultancy Collaboration
Research forms part of academic duties
Speculative research of mutual interest
Results published
Substantial use of facilities
University owns IP
FEC
Post docs (1+ years)
Studentships (3 years)
Voluntary activity by consultant
Specific problem solving for client
Individual work, some facilities use
Results confidential
Client owns IP
FEC + Profit
Short timescales

35. University of Cambridge policy: no formal time restriction academics may consult in two main ways
In a private capacity, from their home address, using their own letterhead and not “holding out”on behalf of the University
On a voluntary basis, using the services provided by Cambridge Enterprise and the University’s wholly owned company, Cambridge University Technical Services Ltd (CUTS)
Obtain the benefit of the University’s indemnity insurance
Time commitment a matter for individual and their H of D
Full details at
Members of the Clinical School carrying out private practice work (post 2000)
May receive fees personally
No more than one NHS session (one half day) per week
Should use CUTS

36. Cambridge Enterprise and CUTS provide
Dedicated personnel ( RCJ + Jonathan Bailey + Legal Office + Insurance Section of Finance Division)
Standard agreements, negotiation of fees (costing and pricing), terms and conditions
Admin, invoicing and accountancy services
Indemnity and personal cover for staff and students (provided a PI is responsible)
Ability to identify to clients both CUTS and consultants’ position in the University
A managed service for both consultants and clients (who pay a 10% management fee as part of the price)
A turnover in of £1.5 million
… an ambition to develop the service further for the benefit of the University, our consultants and our clients

37. Contact us Cambridge Enterprise 10 Trumpington Street Cambridge
CB2 1QA
Tel + 44 (0)
Fax +44 (0)