Présentation à l’École Polytechnique de MontréalJournée de la Recherche 26 mai 2011 1

Value ≥ ƒ (Risk)

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Abandon - Transition Rate - Licenses

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1:20

1:5

1:25

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1 commercial success ~ $50MTotal cost: $ 331.25M (minus ~ $3M license revenue)

5 VC projects @ $10M Cost: $50M

125 Spin-off @ $250kCost: $31.25M

2,500 R&D projects @ $100kCost: $250M

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In other words, is it good enough?The Business Paradox ©

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Opportunity A vs. Opportunity B

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Cause #1: Push strategy;

Cause #2: Little interaction with the market;

Cause #3: Opportunistic approach for project

selection;

Cause #4: Lack of experienced entrepreneur;

Cause #5: Dysfunctional value creation chain;

Cause #6: Dysfunctional financial community;

Cause #7: Reactive governance;

Cause #8: Short-term vision.The Business Paradox ©

trust

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“Ultimately, most business will fail to create value as the leaders reject the importance of setting a trusting environment. Trust is the ultimate ingredient that enables people working together defining the critical path, identifying risk factors and assessing the main challenges. Considering those challenges will bring rapid alignment the deliverables, the priorities and create the momentum essential to value creation.”

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Creation

Momentum Depletion

Declining

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Acceleration

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VCO 1 VCO 2 VCO 3 VCO 4

Total value creation

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Are the Basics checked? Do we understand HOW to do the job? Is the critical path defined?

The deliverables? The risks? The priorities?

Can we assemble the Right team? The competencies? The Attitude?

Can we go the distance (Cash & Time)? Is the team aligned?

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Only then you are ready!

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Merci

Jacques DenommeeDirecteur – Investments

BDC Capitaljacques.denommee@bdc.ca

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