FAQ

What are the criteria for a QUBIS Ltd investment? [back to index]

Successful new business proposals that secure QUBIS Ltd support will have demonstrated that an investment in the new company will lead to the viable commercialisation of university innovation that has definable competitive advantage and that the staff involved are committed to the start-up company route.

The principal criteria used in the selection of suitable projects are as follows:-

How much money can QUBIS Ltd provide? [back to index]

Will I have to invest any personal cash? [back to index]

Will QUBIS Ltd want it's money back? [back to index]

What size of a shareholding will you want? [back to index]

A spin-out company is essentially a partnership between entrepreneurs and the university, which will hold equity via QUBIS Ltd. Promoters are encouraged to personally hold shares (equity) to recognise their historic Intellectual Property contribution to the new venture and their importance to its future success.

The proportions of initial equity to be held by founding entrepreneurs and QUBIS Ltd will be agreed on a individual basis. QUBIS Ltd however, regards the incentivisation of the staff and management involved in each spin-out as vitally important to the success of the venture.

What role would I have in the new venture? [back to index]

What about the Intellectual Property Rights (IPR)? [back to index]

The universities generate Intellectual Property (IP) as a consequence of the knowledge their staff and research students create. This can take various forms, such as Patents which can be registered, but all IP can form the basis for generating wealth creating businesses.

Both universities in NI support revenue-sharing policies with the generators of this IP, and in order to maximise commercialisation they promote its protection and registration so that start-up companies can be endowed with the commercialisation rights. QUBIS Ltd investments are made on the basis that the universities normally hold the IPR at the point of investment.

Are there any legal costs involved in an investment and if so, who pays them? [back to index]

I have a business idea, when do I contact you? [back to index]

Can I also get funding from InvestNI? [back to index]

What type of business information will you want? [back to index]

An outline business plan will need to be developed as an investment proposal and will identify the market opportunity, commercial goals, milestones and resources required. It will show how a product would be brought to the market and will assess the size of that market. Importantly, it will show how the market can be accessed.

The following aspects are typical of an outline business plan for a high technology start-up:-

Executive summary - one page maximum summary of your proposal written in ´layman´s terms´ and explaining ´what you want to do and how you are going to do it´.

Technology - description of the product or technology involved, what does it do, how does it work, are there any patents involved, how much development will be required before a saleable product is available, why is your technology better than what is already available?

Marketing - what is your target market, who is going to buy the product/service, why will they buy it, how much will they pay for it, what is currently available in the market, why is your product/service better, have you any sales or expressions of interest, what price is you product going to be, what cost is your product, are you going to sell direct or through a distributor?

Management - who will form the management team, what relevant skills and/or experience do they bring to the venture, are there any gaps in these relevant skills and/or experience, how will these be filled?

Finance - how much money do you want, how much money do you need, what are the start up costs, when will you start to generate sales income, what happens if your sales take longer to materialise than you anticipate, how much of your company are you prepared to give away in return for equity funding, how much are you prepared to fund yourself?

What happens once I provide you with all the information you require? [back to index]

We will appraise the outline proposal and take a decision, based on its commercial viability, as to whether or not it would be a suitable vehicle for a QUBIS Ltd investment. If we believe that a viable commercial opportunity exists we will try to reach an outline agreement covering investment amount and equity distribution with the main parties.

We will then present the investment opportunity to the QUBIS Ltd Board and recommend an investment. If Board approval is obtained, a formal investment offer is issued and appropriate due diligence may then carried out to confirm the competitive position of the venture and the various legal agreements are prepared (Shareholders’ and/or Intellectual Property Agreements, etc) to launch the new venture.

It must be stressed that all matters regarding the enquiry process are treated as strictly confidential and best endeavours employed to ensure that the process is conducted in a timely manner.

Does QUBIS Ltd provide anything else other than money that will help my new venture? [back to index]

Yes, in addition to the need for capital investment, QUBIS Ltd recognises the key importance of quality advice and back-up support to creating and growing your business.

QUBIS Ltd can offer a comprehensive support service to your start-up company including:

• Sourcing suitable commercial partners and corporate venturers;
• Assistance with business plan development;
• Accountancy services:
• Intellectual Property (IP) advice;
• Advice on the formulation of various legal agreements;
• Company secretariat services;
• Access to incubation centres;
• Contacts with the local ´business angel´ and ´venture capital´ network;
• Advice on the relevant government assistance programmes;
• Membership of an informal network of over 30 other technology based spin-out businesses with a wide range of expertise and experience;
• Strengthened management team through the appointment of experienced non-executive Board members.

Will QUBIS Ltd want to make a Board appointment? [back to index]