Investment seed & start-up funds as a catalyst for economic development & diversity Paul Field

1. Investment seed & start-up funds as a catalyst for economic development & diversity • Paul Field • Technology Transfer Manager

2. 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 Foundation

3. Qatar Science & Technology Park • Home for international technology companies • Incubator of start-up businesses Convention centre, ‘10 • Sidra Medical and Research Centre, ’10 • Treatment, teaching and research QF Housing Hotel, ‘10 • Weill Cornell Medical College in Qatar • Medical school Sports centre, ‘10 • Carnegie Mellon Qatar • Computer science • Business Commercial centre, ‘10 • Texas A&M University • at Qatar • Engineering (4 streams) • Schools • Qatar Academy • Bridge program • The Learning Centre • Georgetown University in Qatar • Foreign service Golf course, ‘10 QF HQ • Virginia Commonwealth University Qatar • Graphic, fashion and Interior Design Al Shaqab stud, ‘08 Education City

4. 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

5. National Data Centre • “Tier 4” data centre • IT services within and beyond EC • independently managed • opens ‘09 • Innovation & Technology • Transfer Centre 1 • 1500m2 x 2 stories x 4 wings • leases of 500 – 6000 m2 • shell office and lab space • opens ‘07 • Emerging Technology Centre • 12,000m2 over 2 levels + podium • leases from 45m2 • incubation focus • cafes, shops, common facilities • opens ‘07 • Innovation & Technology • Transfer Centre 2 • twin of ITTC 1 • opens ‘07 Phase 1 • Site of 120ha, Phase 1 is 35ha • controlled access and circulation • underground parking • building management

6. 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

7. QSTP Provides • Accommodation, Services, Support • commercialisation programs • Dedicated facilities and services for R&C • Access to world-class research institutes

8. Support for commercialisation Patent System & Laws Qatar IP Office Economic Development Proof of Concept Fund Corporate Research New Enterprise Fund Finance Technology Research Grand Challenge Technology Venture Fund Research Networks Investor Readiness Program Management Workforce Development Entrepreneurship Mentoring

9. 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

10. 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

11. The American Funding Phases

12. 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)

13. “The Challenge for Qatar”(challenge for all !) To ‘bridge’ the ‘gap’ and to provide a sustainable source of finance for start up businesses

14. 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

15. 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

16. 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

17. 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

18. 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

19. Contact www.qstp.org.qa info@qstp.org.qa +974 492 7093