Briefing Session

Professor Simon Mosey,Haydn Green Institute for Innovation and

Entrepreneurship (HGI),Nottingham University Business School

Can you learn entrepreneurship?

Have lots of ideas and throw away the bad ones….

You aren’t going to have good ideas unless you have lots of ideas and some sort of principle of selection

Linus Pauling

What the stakeholders think

The Judge

Industry benefits from

YES by encouraging

talented individuals to commercialise their research

The Technology Transfer Officer

If only someone

would

champion YES

in my university

I can give something back to the

industry through YES

The Mentor & Speaker

What the participants say…

Participating and

being one of the

winning team

members changed my

life. Moreover, YES

inspired me to start my

own business

Really excellent

experience that

opened my eyes to a

whole different way

of doing things and

expanded my

horizons in ways I

would never have

imagined before

entering the

competition

The workshop really

opened my eyes to the

world of

commercialisation of

sciences and has had a

huge impact on my

career since

YES gave me the

opportunity to

demonstrate and

develop skills that

one rarely (if ever)

gets the chance to

develop during the

progression of a

‘typical’ research PhD

programme

Skills developed: YES vs. PhD

The YES family

1995: Biotechnology YES

2003: Bioscience YES

2004: North American YES

2007: India YES

2007: North West YES

2008: North East YES

2009: East of England YES

2011: Plant, Microbial and Environment (Syngenta)

2012: BioMedical YES (GSK & SBC)

2013: Chemistry YES (RSC)

2015: Food, Nutrition and Wellbeing (Unilever)

2016: Sustainable by Design (Unilever)

2016: Singapore YES (P&G & A*STAR)

2005: Environment YES

2012: Engineering YES

2012: Digital YES

2013: Energy YES

• We are looking for hypothetical but plausible ideas

• So start with a challenge area of interest and look at new breakthroughs in that area

• For instance if you are addressing healthy ageing or next generation of beauty treatments

• You may find ‘drug to mimic sunlight for safe skin tanning’

• You are allowed to take that idea forward a couple of years and attribute the invention to your team

• Or you can ‘invent’ a hypothetical but plausible method of safely tanning skin through changes in diet

Which ideas are eligible?

Disclosure pitfalls

• Osiris

o Newcastle University

o Enterprise Centre

o Disclosure!

YES19

Tracey Hassall-Jones,

HGI, Nottingham UniversityBusiness School

YES19

• Competitions this autumn:

o Biotechnology YES

o Engineering YES

o Environment YES

• Workshops covering various challenges:

o Energy, engineering and environment

o Plant, microbial and environment

o Biomedical

Energy, engineering and environment 02-04 October (Innovation Park, Nottingham)

Plant, microbial and environment 16-18 October (Syngenta, Jealott's Hill)

Biomedical 06-08 November

(GSK and SBC)

Final 10 December

(Royal Society, London)

Schedule

www.yescompetitions.co.uk

• Before the workshop

o Formulate your business idea

• be clear on your IP position

• careful re disclosure

o Research the market

• market potential, competition

• To help you

o Self-perception test

o Briefing notes

o Intellectual Property Office website

o Mentor forum

o Your own contacts e.g. TTOs (networking)

What you have to do

• Closed group on LinkedIn

• All participants have been invited to join

• Scheduled sessions in specialist areas throughout August and September:

• IP

• Finance

• Business development

• Last years winners

• Post your questions

• Disclosure!

• Not ‘black and white’

Mentor forum

Wednesday am Speakers

Wednesday pm Plan Preparation/Help from Mentors

Thursday am Speakers

Thursday pm Plan Preparation/Help from Mentors

Friday Presentations

Workshop format

• Requirements of a business plan

• IP and patenting strategy

• Raising and managing finance

• Commercial and marketing strategies

• Regulatory affairs

• Case histories

Workshop presentations

• Usually three per workshop

• Specialists in different areas (e.g. IP, finance, business development)

• Available Wednesday and Thursday afternoon

• Allocated per team

Mentors

• Presentation to group of “Equity Investors”

• Contribution from all team members

• Structure of the presentation, up to you

• Use of Microsoft PowerPoint

• 15 mins (max) with 10 mins questions

• Feedback provided

Team presentations

• Held Tuesday 10 December hosted at the Royal Society, London

• Presentations to panel of “equity investors”

• 15 minutes with 10 minutes questions

• Prize fund of £15k

• Accommodation at London Hotel

Final

Demystifying Finance

Professor Simon Mosey

HGI, Nottingham University Business School

• How are you going to finance this venture?

• When is the funding needed?

• How much is needed?

• How are you going to pay back investors?

• Depends on cash flow, profits and valuations

Questions

Cash flowTen year projection

-600000

-400000

-200000

0

200000

400000

600000

800000

1000000

1 2 3 4 5 6 7 8 9 10

£s

Time

• Own funds

o Internal equity

o Shareholders funds

• F.F.F

• Debt

• Business Angels

• Venture Capital

How are you going to finance?

A simplified cash flow

JAN-MAR APR-JUN JUL-SEPTBALANCE B/F 80,000 45,200 2,400

ADD Receipts

Sales

Loans

TOTAL Receipts 0 0 0

LESS Payments

Lab Rent 8,000 8,000 8,000

Salaries 16,000 16,000 16,000

Lab consumables 2,000 2,000 2,000

Marketing 8,000 16,000 4,000

Telephone 800 800 800

TOTAL Payments 34,800 42,800 30,800

BALANCE C/F 45,200 2,400 (28,400)

• Sales (also called revenue)

o Minus

• Cost of sales (directly related to production)

o Equals

• Gross Profit (also called gross margin)

o Minus

• Departmental Expenses

o Equals

• Operating profit (also called earnings)

P&L statement (annual)

A typical P&L

Sales 200,000

Cost of Sales

Purchases 50,000

Direct Costs of Production 80,000

130,000 130,000

GROSS PROFIT 70,000

Less expenses

Salaries 30,000

Insurance, Rent & Rates 5,000

Office Expenses 10,000

Depreciation 10,000

55,000 55,000

NET PROFIT 15,000

• How much someone is prepared to pay

o Analogous to house prices

• Simple valuations Price/ Earnings ratio (P/E)

• Earnings = net profit = £100,000 per year

• A Drug discovery business

o Price = 40 x Earnings = £4m

• A Diagnostic eqt business

o Price = 10 x earnings = £1m

How much is your business worth?

• A venture capitalist invests £500,000 in your business at an early stage for 50% equity

• You float your business and achieve the valuations predicted

Drug discovery business the VC gets 50% x £4m = £2m

Diagnostic eqt business the VC gets 50% x £1m = £0.5m

Exit route for the investor

Summary

• Finance is a different language

• It is the language of business

• The more you use it the more fluent you will become

2018 winners

Phytocolours(University of Leicester) Reduces pollution from the fashion industry by providing structurally coloured cellulose fibres from microalgae. Their product RayonbowTM is used in the manufacture of eco-sustainable textiles to produce fabric that never fades and doesn’t cost the earth.

LactoLab(Universities of Durham, Liverpool and Newcastle) Aims to reduce non-degradable single-use plastic in labs by providing a compostable alternative using food industry by-products. Plastic is rendered chemically and biologically inert through a novel coating.

MooFree(University of Reading) Uses genetically engineered yeast to produce dairy proteins. MooFree dairy proteins help businesses provide sustainable, ethical dairy proteins without having to compromise on taste and nutrition unlike any other options currently on the market. MooFree100% Dairy. 0% Cow.

• Develop enterprise skills

• Create new knowledge

• Think creatively to produce innovative solutions to major challenges

• Collaborate with peers and network with industry experts

• Gain project management skills in the context of business planning

• Learn about ethical, legal and health and safety aspects

• Become a team player as well as fostering mentoring / supervisory skills

• Understand how funding is sourced and managed

• Enhance CVs

• Become career-wise

Benefits

• Its hard work before and during the workshop (but it’s worth it!)

• Help is at hand - please ASK

• Enjoy yourself and

• HAVE FUN!

Summary

Questions