ISOPTT: Increasing the SMEs Own Potential for Transnational Technology Transfer

ISOPTT: Increasing the SMEs Own Potential for Transnational Technology Transfer

Home | Contact us | Sitemap 

Success Cases: Private financing

FORTH Photonics: a success story of a NTBF (New Technology Based Firm) with the use of private financing

The case of FORTH-Photonics concerns a New Technology Based Firm active in the field of innovative imaging diagnostic technologies that was seeking capital to finance the commercialisation of their technology which finds applications in the non destructive examination of biological tissues and objects of high artistic and historical value. The agreement for the financing of FORTH-Photonics was achieved between researcher Assistant Professor Costas Balas and NBG Venture Capital. FORTH-Photonics is a small spin-off company which was created by the ambitious research team of the Institute of Electronic Structure & Laser of the Foundation for Research & Technology Hellas in order to exploit the results of years of research.

HELP-FORWARD assisted with the preparation of the first technology business plan and its promotion to NBG Venture Capital. IRC HELP-FORWARD team played a major role in the creation and financing of FORTH Photonics. First, as the sole consultant of the research team before the creation of the spin-off company by performing intelligence on the competition, structuring of the business plan and market research for the new product. Secondly, as the mediator between the company and the investor throughout the preparation and negotiation of the investment.

Negotiations and due diligence analysis on 2002 led NBG Venture Capital invested in FORTH Photonics the amount of 2,5 million Euro which served as seed capital for the first stages of development of FORTH-Photonics. The money were invested in two instalments, and were used according to a clearly defined Action Plan which was approved by both players involved. NBG Venture Capital estimates a Return on Investment of 6 years, and there is an option for priority in future investment related to further expansion of the company. NBG Venture Capital has now moved to new start-up investments in various technological fields, and is simultaneously assessing others to measure success potentials.

Dr C. Balas bring NTBF know-how on a wide range of innovative imaging diagnostic technologies which find international applications in the non destructive examination of biological tissues and objects of high artistic and historical value. The technology has been already applied to the creation of a colposcope for the non invasive diagnosis of cervical cancer the clinical trials of which show that it can effectively replace the conventional methodology of the smear (Pap) test. The technology has also been applied in the creation of the Musis-2007 family of innovative cameras, currently the state-of-the-art methods for the scientific analysis and restoration of artworks.

FORTH Photonics highlights the paramount importance of private financing as an effective means of developing new ventures. Thanks to the private capital invested, the company was able to proceed to the first stages of its development, to achieve clinical trials and approval by the authorities, and finally to launch and promote their range of products. In nowadays competitive business environment, it is very common that mature and innovative ideas may fail or be abandoned prior to their commercialisation due to lack of such funds. This is particularly important to small sized, but ambitious enterprises that often find themselves in a position of limited investment capital. Another important aspect is the key role of the consultant establishing the foundations to develop a sound investment and in bringing together appropriate partners. FORTH Photonics acts as a benchmarking example with the hope to spur more such cases in the near future.

Internet: http://www.forth-photonics.com/


ISOPTT: Increasing the
SMEs Own Potential for
Transnational Technology
Transfer