2010 Bilcare Technologies. Privileged presentation, slide 1 Singular ID The Story of Commercialising a Materials Technology in Singapore Adrian Burden Co-founding Director of Singular ID President Europe of Bilcare Technologies
2010 Bilcare Technologies. Privileged presentation, slide 2 Overview My background Phase 1 R&D Materials R&D project and applications Proof-of-principle Business Planning Phase 2 spinning-off Venture capital finance & operations First customer & manufacturing partners Phase 3 - growth Overseas expansion, new applications Product launch, further financing Phase 4 exit Acquisition New opportunities and future prospects 2002 2003 2004 2005 2006 2007 2008 2009
2010 Bilcare Technologies. Privileged presentation, slide 3 My background MA Cantab, University of Cambridge Natural Sciences (materials) D.Phil. Oxon, University of Oxford Department of materials, electron microscopy of carbon Founding President of the OU lifesaving club Raychem Ltd, UK Corporate R&D, conductive polymer composites University of Surrey, UK Post doctoral research amorphous carbon films Printable Field Emitters Ltd, UK R&D Manager field emission display technology Institute of Materials Research & Engineering (IMRE) Senior Scientist and Business Development Manager OLED technology, ON-Singapore & Technology Roadmapping Singular ID Pte Ltd Founding CEO Bilcare Technologies President, Europe
2010 Bilcare Technologies. Privileged presentation, slide 4 Phase 1 R&D
2010 Bilcare Technologies. Privileged presentation, slide 5 Phase 1 the R&D project Singapore 2003 2004 2005 2006 2007 2008 R&D Project IMRE / A-STAR
2010 Bilcare Technologies. Privileged presentation, slide 6 Phase 1 the R&D project Magnetic hard disk drive technology Quest for ever-denser information storage In-plane to out-of-plane magnetic bits Materials R&D nanotechnology of candidate films Highly regular and uniform disk media very difficult! Image source: Hitachi Global Storage Technologies
2010 Bilcare Technologies. Privileged presentation, slide 7 Phase 1 the passport analogy Passport number Serial # or index # Makes searching a database quick and easy Photograph, signature or fingerprint The security / biometric Giving products fingerprints Materials fingerprint The security feature Cannot be replicated Barcode Serial # or index # Makes searching a database quick and easy
2010 Bilcare Technologies. Privileged presentation, slide 8 Phase 1 applications: the problem of counterfeits Authorised distribution Grey market diversion Impact on Brand Owner Lower margins Unforeseen liabilities Distribution license issues Brand owner R&D $ Quality Testing Authorised factory Product overruns Lost revenues Over supply Increased warranty claims Lower margins Counterfeit products Lost revenues Increased warranty claims Brand erosion Product liabilities Copycat factory Interpol estimates 5-7% of world trade involves counterfeits This is equivalent to over USD 500 billion in lost sales
2010 Bilcare Technologies. Privileged presentation, slide 9 Phase 1 leading to a proof-of-principle Credit cards and paper with fingerprint tag Scanner with sensor and electronics Mobile phone and software Back-end database
2010 Bilcare Technologies. Privileged presentation, slide 10 Phase 1 R&D - Highlights Proof of Principle Publicity Singular ID Market Research Business Plan License Agreement Explaining the technology to the President of Singapore Signing of the license agreement
2010 Bilcare Technologies. Privileged presentation, slide 11 Phase 1 - our toolbox Laboratory log books Travellers / process control TRAV 1.1, 2.1, etc First-cut roadmap Non-Disclosure Agreements Executive Summary EXEC 1.1, 1.2, etc Business Plan Information sheets Presentation License Agreement (and benchmarks)
2010 Bilcare Technologies. Privileged presentation, slide 12 Phase 1 - our first-cut roadmap Mid 2005 Spin-off 2006 2007 2008 Market trends Finance & Revenue Infrastructure Accreditation Staff Revenue Materials Tag Scanner Dispenser Database
2010 Bilcare Technologies. Privileged presentation, slide 13 Phase 1 looking back What we did well Kept detailed records of all work and correspondence Created an internal shared IT resource Used government funding to create a proof-of-principle Filed 2 patents that became a good foundation Negotiated a fair / rigorous license agreement Started some early branding & publicity Where we could have done better Secured venture finance before spinning-off Found a customer before spinning-off Had a more relevant hand-held prototype device
2010 Bilcare Technologies. Privileged presentation, slide 14 Phase 2 Spinning Off
2010 Bilcare Technologies. Privileged presentation, slide 15 Phase 2 spinning-off & starting operations Singapore 2003 2004 2005 2006 2007 2008 R&D Project IMRE / A-STAR Spin-off company 1 st runner-up finalist winner Series A Acquired by Bilcare
2010 Bilcare Technologies. Privileged presentation, slide 16 Phase 2 - why Singapore? Universities & Research Institutes Incubators & Science Parks National infrastructure & capability Basic research Platform technology Prototypes Business development Supply chain integration Scale-up & manufacturing Application driven Sales Overseas Marketing & growth R&D Start-up IT & IP generation Logistics equipment community infrastructure Business Corporate Education R&D grants acumen governance
2010 Bilcare Technologies. Privileged presentation, slide 17 Phase 2 why Singapore? R&D Science, Engineering, Biomedical Applied research and enhancement schemes Economic development Attracting MNCs, supporting SMEs Standards and Productivity Supports technology and commerce International Enterprise Overseas expansion and branding Infocomm Development IT and infrastructure focused Other agencies and organisations play important roles too
2010 Bilcare Technologies. Privileged presentation, slide 18 Phase 2 Spinning off - Highlights Investment from Advance Nanotech Winner of Major Business Plan Competition Production Partners Product Development
2010 Bilcare Technologies. Privileged presentation, slide 19 Phase 2 our operational model Leveraging on alliances Channel Marketing Joint ventures Brand security companies IT Platform companies Customers Singular ID IP & Systems Integration Out-sourcing & partnerships Established hardware suppliers Scanner contract manufacturers Tag and Label contract manufacturers Data management Internet & Mobile service providers
2010 Bilcare Technologies. Privileged presentation, slide 20 Phase 2 lucky break
2010 Bilcare Technologies. Privileged presentation, slide 21 Phase 2 our toolbox Company templates NDAs, Travellers, etc Employment contracts Accounting package (Excel to start!) Term sheets / Investment Agreements Letter Agreements PO system, Invoice system, CRM Budget sheets Board Reports Server
2010 Bilcare Technologies. Privileged presentation, slide 22 Phase 2 looking back What we did well Moved into presentable incubation premises Generated publicity Secured venture finance Obtained a customer and had focus Watched the cash flow carefully Secured a government R&D grant Won a significant business plan competition Where we could have done better Secured a bit more finance Captured more of the lower end of the market Added a more senior member to our team earlier on Used a good accounting package early on
2010 Bilcare Technologies. Privileged presentation, slide 23 Phase 3 Growth
2010 Bilcare Technologies. Privileged presentation, slide 24 Phase 3 growth Padua, Italy Singapore 2003 2004 2005 2006 2007 2008 R&D Project IMRE / A-STAR Spin-off company winner 1 st runner-up finalist winner Series A Acquired by Bilcare
2010 Bilcare Technologies. Privileged presentation, slide 25 Phase 3 - our first customer Sanden, air-conditioning compressor Sanden Non-Sanden
2010 Bilcare Technologies. Privileged presentation, slide 26 Phase 3 Sanden s production line
2010 Bilcare Technologies. Privileged presentation, slide 27 Phase 3 - fashion & luxury sector Partnership with Euromark to make enxure labels for the European luxury goods segment Euromark overview holds about 30% market share of labels for European handbags and clothing Current status Identified European launch customer Labels passed all customer s testing to date
2010 Bilcare Technologies. Privileged presentation, slide 28 Phase 3 - no to fakes Visit www.notofakes.com for more information about fake products As a brand owner you can connect with customers using our hosted page service
2010 Bilcare Technologies. Privileged presentation, slide 29 Phase 3 Growth - Highlights Minister of State for Trade & Industry, Singapore, attended product launch Awards New Investors Launch Customer
2010 Bilcare Technologies. Privileged presentation, slide 30 Phase 3 our toolbox Accounting package (MYOB) More term sheets / Investment Agreements Detailed due diligence directories Extensive warrants and disclosures Product literature & user manuals EULAs and other Terms & Conditions Patents, trademarks, domain names management Publicity archive Permanent exhibits
2010 Bilcare Technologies. Privileged presentation, slide 31 Phase 3 looking back What we did well Continued to keep the information flowing Had serious acquisition discussions Used students to keep the cost down Launched a product Continued to watch the cash flow Secured another government R&D grant Where we could have done better Been less distracted by range of commercial opportunities Raised money overseas more quickly Organised our IT system ahead of future staff expansion
2010 Bilcare Technologies. Privileged presentation, slide 32 Phase 4 Exit and the future
2010 Bilcare Technologies. Privileged presentation, slide 33 Phase 4 Exit and the future 2003 2004 2005 2006 2007 2008 R&D Project IMRE / A-STAR Spin-off company Bilcare company winner 1 st runner-up finalist winner Series A Acquired by Bilcare
2010 Bilcare Technologies. Privileged presentation, slide 34 Phase 4 - Bilcare
2010 Bilcare Technologies. Privileged presentation, slide 35 Phase 4 Highlights Rebranding and new marketing material New range of products The nonclonable TM system More awards
2010 Bilcare Technologies. Privileged presentation, slide 36 Phase 4 - the future Bluetooth nonclonable reader Scan then touch Phone, PDA, laptop, PC Results via GPRS / internet nonclonable label DataMatrix & fingerprint combined
2010 Bilcare Technologies. Privileged presentation, slide 37 Overall - looking back Positive Our technology is defect tolerant Singapore was an excellent place to start a business We had a clear vision and stayed focused We learnt a huge amount in a short space of time We kept the news flowing Negative Raising early stage funding for high technology was extremely difficult There are lots of balls in the air when you run a technology start-up. You need to quickly learn to juggle!