Investment seed & start-up funds as a catalyst for economic development & diversity
Paul FieldTechnology Transfer Manager
Qatar Foundation
• Founded in 1995 by His Highness the Emir Sheikh Hamad bin Khalifa Al-Thani
• Chaired by Her Highness Sheikha Mozah bint Nasser Al-Missned
• An independent, nonprofit organisation committed to the development of Qatar and its people
Qatar Science & Technology Park
• Home for international
technology companies• Incubator of start-up
businesses
Education City
Al Shaqab stud, ‘08
QF Housing
Hotel, ‘10
Commercialcentre, ‘10
Golf course, ‘10
Sports centre, ‘10
QF HQ
Schools• Qatar Academy• Bridge program
• The Learning Centre
Virginia Commonwealth University Qatar
• Graphic, fashion and Interior Design
Weill Cornell Medical College in
Qatar• Medical school
Texas A&M Universityat Qatar
• Engineering (4 streams)
Carnegie Mellon Qatar
• Computer science• Business
Georgetown University in Qatar
• Foreign service
Conventioncentre, ‘10 Sidra Medical and
Research Centre, ’10
• Treatment, teaching and research
Qatar’s R&D Growth
• 2.8% of Qatar’s GDP to R&D activity• Education City Universities• SIDRA medical and research endowment
c.US$7bn• QNRF• Overseas attraction to first class organisations’
into region
Emerging Technology Centre• 12,000m2 over 2 levels + podium
• leases from 45m2
• incubation focus• cafes, shops, common facilities
• opens ‘07
Innovation & TechnologyTransfer Centre 1
• 1500m2 x 2 stories x 4 wings• leases of 500 – 6000 m2
• shell office and lab space• opens ‘07
Innovation & TechnologyTransfer Centre 2
• twin of ITTC 1 • opens ‘07
National Data Centre• “Tier 4” data centre
• IT services within and beyond EC• independently managed
• opens ‘09
Phase 1
Site of 120ha, Phase 1 is 35ha•controlled access and circulation
• underground parking• building management
Objectives
• Promote applied research, technology development and commercialisation in Qatar
• Grow and diversify Qatar’s economy through application of technology
• Accelerate formation and growth of start-up technology companies
• Create high-value employment and development opportunities, in particular for Qatar’s university graduates
QSTP Provides
• Accommodation, Services, Support– commercialisation programs
• Dedicated facilities and services for R&C• Access to world-class research institutes
EconomicDevelopment
Management
Technology F
inan
ce
Corporate Research
Proof of Concept Fund
Research Grand Challenge
New Enterprise Fund
Technology Venture Fund
MentoringEntrepreneurshipWorkforce Development
Qatar IP OfficePatent System & Laws
Investor Readiness Program
Research Networks
Support for commercialisation
Technology Transfer
• The process of developing practical (commercial) applications from the results of scientific research
• The formal transfer of rights to use and commercialise new discoveries and innovations
The funding issue in Qatar• Lack of investment finance to assist in forming &
developing technology related businesses• Financial community looking more favourably on
retail/property enterprise start ups• Will not meet macro economic diversity targets
The Equity ‘Gap’
• Harder to raise US$1m than US$100m
• More risk - often pre-revenue• more effort required - mentoring, hands-on role• Often idea through a committed academic• Time to liquidity - exit 5+ years
• Limited Seed/Start up funds in the region (Injazat, UAE)
“The Challenge for Qatar”(challenge for all !)
To ‘bridge’ the ‘gap’ and to provide a sustainable source of finance for
start up businesses
Adopt International Good Practice
• Enterprise development funds provided by public sector vehicle or a mix of public/private sector partners and match funding
• Pump-priming a Middle East VC industry
Private Equity required in MENA
• Seed/Start-up funds
Purpose is to refine, develop and market test IP, prototypes or concepts
Characteristics are non trading, no firm business model
Objective to verify commercial viability, test route to market & build management team
Opportunity Pipeline
• Internationally university spin outs are an emerging success story
• Exponential growth in R&D leading to commercial opportunities
• Attraction of a growing economy• Opportunities of regional significance - e.g.
medical
UK Case Study
• 191 active funds, 26% publicly backed• Over half of funds’ size is less than US$25m• Average investments p.a. 5• 50% specialist, 50% generalist• US$320m raised for university spin out activity in
2006• 35% of spin outs raise external finance• 7% of university spin outs have gone public or
been acquired
U.S. Market
• US last 10 yrs US$12.6bn invested at seed stage• Over 5,000 university spin outs since 1980• MIT, Stanford• Organisations which have benefited overseas
include; Apple Federal Express, AOL, Google