Miracles
Hermann Hauser
Cambridge HVM MNT Expo December 2006 Slide 1 Why do Miracles happen?
• People • Disruptive Technology • Clusters and Venture Capital • Community
Slide 2 From R to D
Research Technology Product Development Development Old: AT&T Corporate University Research, Big Company Consultancy
New: CISCO M&A, IPO University Start-ups Big Company
Slide 3 European Miracles
• Google • Wilex • ARM • CSR • Skype • Solexa
• Plastic Electronics Slide 4 Wilex
• Biopharmaceuticals • Cancer • Munich based • > $200m market cap • 1996: winner business plan competition • Frankfurt stock exchange
Slide 5 ARM
• Acorn Team plus Sir Robin Saxby • Acorn Risc Machine • Value: Low Power, Low Cost, Instruction set • ARM Platform: 2 BILLION in 2005 • De Facto Standard: – Mobile Phones – PDAs – iPod – Gameboy • ARM Community • Market value $3bn
Slide 6
Slide 7 Skype
• Founded 2002 • Nicolas Zenstroem • Janus Friis • Sold to Ebay €2.6bn +€1.4bn earn out • P2P VOIP on internet
Slide 8 CSR • CCL team spun out in 1999 • First Single chip Bluetooth: low power, low cost, small form factor • First single chip 802.11: low power, low cost, small form factor • Fabless Chip company • BT, 802.11 WIFI standard • Mobile phone community • 2005: Revenues:$500m, Profits: $100m • Market value $2bn
Slide 9 Cambridge
• University ranked #3 in the world • 72 Nobel laureates: – global #1 – More than any country except US and UK • High-tech cluster: #1 in Europe – 1,000 high-tech companies – 40,000 employees • ARM, CSR, CDT, Plastic Logic
Slide 10 Cavendish Laboratory
• Maxwell: useful equations • JJ Thomson: electron • Earnest Rutherford: Proton • Chadwick: Neutron • Crick & Watson: DNA • Richard Friend, Jeremy Burrows: OLEDs • Henning Sirringhaus: Plastic transistors, C-
mos Slide 11 Plastic Electronics
• Richard Friend, Henning Sirringhaus, Stuart Evans + Ink-jet cluster • Plastic transistors: low cost, flexible, large area • New Value stack for Plastic Electronics • Flexible displays • Cambridge Ink-jet, polymer community • PEM centre?
Slide 12 First Transistor Printed Transistor 20th Century 21st Century • •
Slide 13 Slide 14 E-Newspapers M B I
: e c r u o S
Slide 15 Silicon vs. Plastic…
Conventional Printed Plastic Semiconductor Electronics
Direct printing & solution processing
Photolithographic patterning, high temperatures & vacuum processing Slide 16 Slide 17 Solexa
• Ultrafast Gene-sequencing • Origin: Chemistry Dept. David Klenerman, Subramanan • CEO: John West • Whole Genenome in less than one Week, for less than $100,000 • Personalised medicine • Camp: Sanger centre, Lynx
Slide 18 Corporate Venture Capital
• ICT: Intel, Cisco, Siemens • BIO: more UK activity • Most important MISSING link
Slide 19 When is Innovation Successful?
When a defensible break-through connects with a large market.
Slide 20 Where does Innovation happen?
In Clusters like
Silicon Valley, Route 128, North Carolina Cambridge, London Munich, Paris, Stockholm, Helsinki,
Slide 21 Clusters
• World Class University • Entrepreneurial Spirit • Venture Capital • Supportive Government: CGT, R&D credits, Immigration • Close Relationship with Lead Companies • Infrastructure: Legal, Accounting, Leasing • Real Estate: Availability, Short Leases • People Network!
Slide 22 Venture backed IPO’s
90 85 80 US 82 s
h Europe 69 t 70 69 n s 67 65 o O 60 62 m P
I 57
2 54 f 47 48 1 o 50 49 48 t o 46 s 46 41 a N 40 l l 35 37 a e
t 32
h 30 o t 28 24 28 26 T r 24 23
e 21 21 20 22 18 v 21 14 13 15 15 o 13 10 9 11 9 6 5 0 4Q Q1 2Q 3Q 4Q Q1 2Q 3Q 4Q Q1 2Q 3Q 4Q Q1 2Q 3Q 4Q Q1 2Q 3Q 02 03 04 05 06
Slide 23
Source: VentureSource Average Deal Size, Seed & First stage
US Europe Amadeus Companies 178% 180% ) 170% m 160% €
( 150% 142% 138%
e 140% z
i 130% 121% 115% 115%
S 120% 110%
l 110%
a 100% e 90% D 80% 68% 71% e 70% g 60% 48% a 46%
r 50% 41% 40% 35% e 40% 32% 34% v 30% A 20% 10% 0% No of rounds 1999 2 0 0 0 7 2 0 0 1 20 2 0 0 2 9 2 0 0 3 2 2 0 0 4 5 2 0 0 5 2 2 0 0 6 e *2 4 (Amadeus companies) * 06 estimate is based on Q1-Q3 2006
Slide 24 Note: Later Rounds include Second, subsequent Rounds & Restarts. Europe shown as percentage to US Source: VentureSource, Amadeus Analysis Serial Entrepreneurs
Serial Entrepreneurs
100% 100%
80% s e i n a
p 60% m o 41% C
f 40% o
. o N 20% 17%
0% AM I AM II AM III
Slide 25
Source: VentureXpert Conclusion
• Miracles happen all the time • Technology Development Key • Plastic Electronics NEXT Growth Sector • Needs Clusters and VC • Have Faith in Europe
Slide 26