Funders Forum A Venture Capitalists View

1
Funders ForumA Venture Capitalists View

• Why Universities need to care about Capital
  Markets
• Anne Glover - CEO Amadeus Capital Partners
  Limited
• November 27th 2006

2
US Venture Capital Commitments vs. NASDAQ
Venture Capital Fund commitments are correlated
with the level of the NASDAQ index
Source VentureSource/Thomson Venture Economics,
Bloomberg
3
UK Total High Tech VC Investment (All Stages, m)
m
UK Venture Capital investment followed the same
pattern
Source BVCA
4
UK University Spin-out Company Formation
Activity
.as did University spin-outs
Source Spin-out Monitor,Library House,2005
5
European RenaissanceTrailing 12 months Number of
Venture backed IPOs
Sarbanes Oxley Effect
Number of IPOs in Europe are outpacing those in
the US for the first time since Q4 2001.
Source VentureSource
6
The UKs Unique Opportunity

• Strong Science Base
• Over 36 research based Universities
• Several in the top 50 globally
• Strong private equity industry
• Second only to the US in maturity, scale and
  success
• Approximately one-third of all invested venture
  capital in Europe
• Strong capital markets
• LSE is the most sought after listing location for
  foreign companies
• AIM is providing growth capital previously
  missing for UK companies
• Supportive Government
• RD tax credits
• Favourable macroeconomic and fiscal environment
• Broad and active support for the knowledge
  intensive sectors

7
An opportunity .to accelerate technology
innovation

• Which happens in clusters like
• Silicon Valley, Route 128, North Carolina
• Oxford, Cambridge, London
• Munich, Paris, Stockholm, Helsinki,
• BUT

China and India will catch up in innovation and
the US will fix its red tape
8
UK Ireland Technology Clusters

• Comprised of
• World class universities
• Corporate research facilities
• Technology consultancies
• Supportive local government
• Flexible infrastructure (science parks, leased
  offices etc)
• Business angel communities
• Local venture capitalists
• Successful large and small companies
• Multiple job opportunities within a specific
  career area
• Multiple networks to facilitate knowledge sharing
• Attractive social communities

Technology start-up activity requires an
eco-system to develop successfully
9
Continental Technology Clusters

• Most other European countries have two or fewer
  world class clusters
• All have less access to capital business angel,
  VC and public market than in the UK
• Many do not yet have the entrepreneurial track
  record of the UK

But the real competition is global not regional
10
Venture Capital Expansion into or across Europe
Source Global Trends in Venture Capital 2006
Survey, Global report sponsored by Deloitte
Touche Tohmatsu

• Only the Europeans are seriously interested in
  expanding within Europe

11
University and Venture Capital Collaboration

• The brutal fact is that not all Universities will
  spawn a cluster in all fields - and each must
  focus on only a few commercial areas
• Business and entrepreneurs can now access talent
  globally, but can be attracted by many factors
  the UK has to offer
• Clear intellectual property rules
• World class research and talent
• Diverse commercial activity in its sector
• Supportive Government policy
• Good infrastructure
• Availability of a chain of capital business
  angels, venture capitalists and public market

The UK must build a few world class clusters
that can compete with Silicon Valley today .
And Shanghai tomorrow