FRIDAY 22nd JANUARY ‘10

Moving From Science to Business

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Contents

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Introducing SRS

Company formed in 2007 - resource management company

Technical and operational knowledge base

Complementary experience – mixed backgrounds

Received investment from IP Group May 2008

Leverage investment into new technologies/ projects

Market focussed – problems first

Acquired Modern Waste December 2008

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We work in partnership with major blue chip clients across all sectors both in the UK and abroad

Waste is our Big Issue!!

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Access to New Technology

• 10 Universities with IP Group• Also work with others • Substantial technology pool• Focused R&D• Patented processes• Bespoke and generic solutions• Client service – access and assist

Our Approach

Commercial Expertise

Process

People

Market Knowledge

Four key pieces to the jigsaw

Four key elements to our approach

Trained in the environmental

sector

Focus on real problems – not perceived ones

Know the industry and what it needs

Identify market applicable opps

and build business

The Route to a Tech led Business

Executive search

Investment

Corporate Finance

Support services

Business developme

nt

Technical and

commercial

assessment

Strategy developme

ntservice

Market Opportunit

y

IP/Know How CEO/Chair Infrastructur

eFundingCustomers partners

Key pillars for success

Technology transfer Business building

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Adding Value to the process

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What we are Looking For

Solutions to real problems

Evolutionary or Revolutionary - But not ‘Me too’

In areas that we understand – not just those requiring funding

Focussed on the Cleantech sector (but more to do with waste)

Scalable

Clear route to market through existing channels

Early stage – risk managed by market knowledge/contacts

Strong barrier to entry

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Current Portfolio

Biowaste2Energy Ltd – Investment with University of Birmingham

Encos Ltd – Investment with University of Leeds

Yorkshire Water Ltd – Joint development project to recover value from ash

United Utilities – named Commercialisation Partner for EU funded Project

Selection of other technologies currently being assessed

Some already in market but have been focussed wrong

Assisting major technology transfer company with waste related projects

Biowaste2Energy

Stake acquired in 2007 by Modern Waste - University of Birmingham

Conversion of food (sugary) wastes to Hydrogen (more efficient energy carrier)

Two stage process – dark stage and light stage – both biological processes

Currently identifying options for scale up – International Opportunity

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Corporate

The concept

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Construction products from 100% waste derived material - cement free

Developed by University of Leeds & University of Nottingham

Initial products to be made from incinerator ash and waste vegetable oil

First Encos block plant to be operational early 2010

The process

The Challenges

Identifying the route to market – if not already done from start

Getting out of the Laboratory – fear

Trying to solve all of the problems before opening the Lab door

What’s the Business Plan – licence or build?

Finding the Cash!!

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Corporate

Board to Board

Our key challenges to success

Not always same as others!

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Route to Market

Is there a market??????

Has technology been developed to meet a particular problem?

How much do we know about the scale of that problem?

Who may be the key clients and where are they?

What does the technology do that differs from existing options

Is it needed?

Are we trying to sell a ‘Black Box’? (Competition)

How will we get paid?

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Getting out of the Lab

Fear!!! – what do we need to do to be successful?

Comfort Zone

What if it can’t be scaled up?

Are we at a realistic point of (potential) success?

What if I bring in outsiders and lose control ?

Who’s best to lead? (CEO v’s CTO)

Who can get the necessary funding?

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Stage of Development

Are we trying to solve all of the problems before opening the door?

If so – are we the right individuals to solve all of the problems?

80/20 Rule – will added work provide the necessary answer?

Where do the real efforts need to be placed (and not just the fun bits)?

Are the problems related to market applicability?

Who is needed to really sort these?

Done with existing resources?

Call for outside help?

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Business Model

Is there one – developing to meet a market need or to advance science?

If we have a marketable product what’s the best route?

Licensing – provides a wide market opportunity and great for some ideas

However – can prove a difficult birth if market cannot see the value

Spin-Out – provides a real company to move forwards to development

However – requires ability to work with the market to develop a

profitable business (and a strong delivery team)

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Funding

IF:

You have a technology which meets a (scalable) market need

Is understood by the end users/customers

Provides real market benefits and is price competitive

Provides a suitable entry barrier

Meets the current Zeitgeist

Then funding is relatively straightforward

BUT – do the funders understand the market you are in/aiming for?

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Key Considerations

Use your Technology Transfer Office

They know how to move towards a business

There to help you

Determine the market you intend to service

Can you work directly with the market to develop – collaboration

Only route to success is developing something that meets need

Develop a robust business delivery plan

Spin out or Licence – what’s best for your market (customer focus)

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Concluding Comments

Remember that you are developing a solution to a problem

Develop with the customer in mind – can you develop with them?

Do not be afraid of external input – the maths on 100% of Zero are easy

Identify the real value – is this a component or the sum total?

If a component – can we sell 200 of them instead of 1 full plant?

Funders do not always understand the market focus – they follow the

crowd

Look for international opportunities where local ones are not obvious

Make sure you are protected before going into the Public Domain!!

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Karl HylandsDirector

Email: karl.hylands@srs-eu.comMobile: 07795 568959Web: www.srs-eu.com

Contact Details: The End+