Jack LangSerial Entrepreneur

Entrepreneur in Residence

University of Cambridge

Creating the Climate for Creating the Climate for InnovationInnovation

ISBN: 0273656155

ISBN: 0273656155

Number of high tech firms in Number of high tech firms in CambridgeCambridge

1960 1970 1980 1990 2000

1600

800

300

8% of

EU VC

Cambridge ClusterCambridge Cluster

About 1500 companies– Employing about 50,000– Technion ~30

Largest European cluster $20 billion value created

by Cambridge Alumni– Stanford $1000 billion?

Billion $ market cap companies

– ARM, – Virata, – CSR, – Autonomy, – Cambridge Antibody

Cambridge Angels

Source: Cambridge Technopole Report

Driven by People....Driven by People.... Local heros

– Small core group of “seeds”• Structural and relational social capital

– Network – know each other

• Serial entrepreneurs • Experience, contacts• Trusted by external investors

– Willing to give time to new ventures• Mentoring

– Observable• Articles, talks, dinners• “If he can do it, so can I!”

Until 1985

1986-1990

1991-1995

1996-2000

2001-2002

Cambridge

University

AcornHermann

Hauser

Acquired by Olivetti

Olivetti Research LabAndy Hopper

Adaptive Broadban

d

Cambridge BroadbandAcquired by American Microwave

Acquired by Western Multiplex Corp

Andy Hopper

Peter Warton

IPV (Telemedia Systems)

Andy Hopper

Virata(ATML)

Hermann Hauser

Andy Hopper

Merged with

Globespan

Acquired by AT &T

RealVNC

Virtual Network

Computing

Level5NetworkAndy Hopper

ANTAlex Van Someren

Niko

nCipher

Alex Van

Someren

Netchannel Hermann Hauser

Jack Lang

Acquired by

NTL

ARMRobin Saxby

Element 14Stan

Boland

Acquired by Broadcom

Amadeus Capital

PartnersHermann Hauser

IQ BioHermann Hauser, Chris Keightley

Part of DAKO Diagnostics

DakoCytomation - Merged with

Cytomation Inc

CDT

Richard Friend

Richard Friend Plastic Logic

AnalysysDavid Cleevely

Cambridge Network

David Cleevely

Hermann Hauser

Alec Broers

Cambridge 3G

David Cleevely Virtual Business Network

David Cleevely

SimonElliot

CPSPeter Duffett-Smith

Teraview

Michael Pepper

Don Arnone

Polight Technologies

Stephen Elliott

Pavel Krecmer

ART

Daniel Hall

Pilgrim BeartActiveRF

Pilgrim Beart

Antenova

Zeus Technology

Adam Twiss

David Reeves

Cambridge Semiconductor

Gehan Amaratunga

Florin Udrea

MuscatJohn Snyder

Dr. Martin Porter

Enterprise AcceleratorJohn Snyder

John SnyderWebtop

Smartlogik

Acquired by Dialog

Small World

Richard Green

Authur Chance

CAD

Shape Data

Charles Lang

Acquired by GE

TensailsRichard Green

VBN online

TerraPrise

Ubisense

Andy Hopper

Steve Pope

Andy Hopper

Andy Ward

Pete Steggles

Simon Elliot

Electronic Share Information Acquired by

E* Trade

Hermann Hauser

Jack Lang

Top express

Jack Lang

Splashpower

Lily Cheng

James Hay

Saviso GroupAdam Twiss

Bryan Amesbury

Innovia

Collin Ager

Garraint Davies

Cambridge Interactive Systems

Hermann Hauser Graham

O'Keeffe

Richard

Youell

Andrew Dames

Ray

Anderson

Andy

Hopper

Mike Muller

Duncan

Stewart

Chris

Wade

David Cleevely

Gerald

Avison

Stephen

Ives

Richard Friend

Bob

Pettigrew

Peter Wynn

Alex Van Someren

Robert

Hook

Robin

Saxby

Jamie

Urquhart

Laurence Garrett

Pilgrim Beart

Jack Lang

Phil O'Donovan

Robert

Swann

Stephen

Elliott

John Paul

Auton

Gordon Edge

Dr. Peter J. Duffett-Smith

Nigel Berry

Charles Cotton

Simon

Segars

Sir Alec Broers

Michael Ledzion

Richard King

Cambridge Cluster

Common Directorships/Investments

Source: Yupar Myint and Shai Vyarkarnam

Judge Business School

Hierarchy of NeedsHierarchy of NeedsAbraham Maslow 1943 Abraham Maslow 1943 A Theory of Human MotivationA Theory of Human Motivation

Physiological

Safety

Social

Esteem

ActualisationGrowth

Self- Realisation

Self Esteem

Recognition

Peer esteem

Belong, be accepted

Give and receive friendship

Protection from danger

Economic Security

Warmth

Food

Drink

Air

PAY is not a specific need, only a means

Safety and SecuritySafety and Security Thriving local economy

– Easy to get a job if it goes wrong Conventional jobs not so secure

– Academic competition– Large corporates down-sizing

Try before you buy:

– Sabbaticals, part time appointments

– Spin outs, in-house incubators, “intrepreneurs”

Social & EsteemSocial & Esteem

Compatible with Lifestyle choices

– Working hours– Dress, meetings, schools etc

Social acceptance

–Better to try and fail, than not try

–OK to be an entrepreneur

ComplexityComplexity Understanding the process

–Company formation– IPR–Tax

Finding advisors

–Mentors–Professional services

•Lawyers, accountants, PR etc•Banks, investors• Incubators

AdvantagesAdvantages

Personal Growth Better toys Own boss Prospect of personal wealth

–Tax, IPR licence

ACCTOACCTO Criteria for customer acceptance

– Everett Rogers “The Diffusion of Innovation”• Simon & Schuster International; • ISBN: 0743222091

A - relative Advantage– Loose IPR regime

C - Complexity– Can I understand what I need to do?

C –Compatibility– Part-time posts

T -Trialability– Can I test it without risk first?

• Sabbticals

O - Observability– Can others see the benefits?

• Local heroes

Role of UniversitiesRole of Universities

What Universities should do:

– Teach skills• Money• Legals• Project Planning• Market research

– Mentor• Contacts, exemplars• Friendly infrastructure• Banks, lawyers, patent

agents, accountants etc

– Encourage• Business Plan

competitions• Sabbaticals/part time• Publicity• Network

What Universities should NOT do:

– Run incubators– Run Seed funds– Run Venture Capital

funds– Grab IPR

• No UK University has made money on IPR licensing

– Patent anything

Role of GovernmentRole of Government

What Government should do:

– Positive tax regime• EIS• Soft Loans• Export credits• Secondary Share market• Informal Investment

– Simplify regulation• Reporting• Employment• Skills

– Encourage• Heroes• Network• Outsource

What Government should NOT do:

– Give Grants• People compete for the

grant, not the market

– Run incubators• Leave it to commercial

market

– Run Seed funds• Leave it to the

professionals

– Run Venture Capital funds

• Leave it to the professionals

– Grab IPR• Don’t kill the goose• No European

University has made money on IPR licensing

Cambridge ClusterCambridge Cluster

About 1500 companies– Employing about 50,000– Technion ~30

Largest European cluster $20 billion value created

by Cambridge Alumni– Stanford $1000 billion?

Billion $ market cap companies

– ARM, – Virata, – CSR, – Autonomy, – Cambridge Antibody

Cambridge Angels

Source: Cambridge Technopole Report

University IPR Policy changed

Wildflower Meadow Wildflower Meadow modelmodelSUN (finance)

Rain (expertise)

Market provides fertile ground

Entrepreneur

(Seed)

Market too small

- Stunted growth

- Eventually dies

Seeds form new colonies

(spinouts)

Colonise neighbouring patch

Outgrows strength

= Runs out of cash

- Dies

Harvested by

larger entityPasses through

entity