TECHNOLOGY TRANSFER: OVERVIEW

In 2003, the United States Government is investing approximately $100 billion across various programs in research and development. These funds are dispersed to over 500 corporations, universities, and federal labs to conduct basic research, applied research, development, testing, evaluation, and demonstrations. Despite this wave of R&D spending, there exists a lack of venture capital effort focused on the commercialization of federally funded technologies.

WCP has the opportunity to examine these technologies at various stages of their development and can extract these technologies under existing technology transition programs using licensing agreements. Once extracted, we will add management experience from our network of investing members, money and guidance in the strategic planning and execution necessary to build the business. With revenues generated from government and corporate customers, WCP will assist in developing the business until the timing is appropriate for an exit via an initial public offering or a sale to a strategic buyer.

The commercialization of federally funded technologies involves the following basic steps:

1. Identifying technologies within the federal, corporate and university labs.
2. Transfer the technology and scientists out of the lab and into the commercial world using licensing agreements.
3. Secure a significant ownership position in the company.
4. Obtain follow-on federal funding and partnership agreements for facilities and personnel, if possible.
5. Build the company through insertion of management, technical and marketing talent.
6. Exiting the venture through a sale to a strategic buyer or an initial public offering.

We will seek to secure licensing agreements for the intellectual property developed with federal funds in addition to a significant ownership position and board seats in the company. The chosen technologies will satisfy a readily identifiable and achievable market or programmatic need and will have received significant federal investment funds in the past. The technology will have been sufficiently developed and proven so as to limit further 'development' risk. Future intellectual property will be the property of the company.

By obtaining a licensing agreement to use the intellectual property we are able to leverage the federal funds spent in development, personnel and physical plant resources. To develop similar intellectual property would require a high degree of risk and large cash outlays to fund the venture. Even this type of technology R&D is beyond most early stage venture capital funds.