Turning science into business:
From research to market – the Epyxs case
Mario Cameron, PhD
ICT Innovations: Research → Business → Society
Brussels, 10 Mai 2011
CameronPartners Mannheim, Germany – Concepción, Chile

AGENDA
Our business model
The Epyxs case
Company overview
Previous history
New strategy
Development results
Current status
Some lessons learned
CameronPartners Mannheim, Germany – Concepción, Chile

AGENDA
Our business model
The Epyxs case
Company overview
Previous history
New strategy
Development results
Current status
Some lessons learned
CameronPartners Mannheim, Germany – Concepción, Chile

WE ENABLE BUSINESS, ECONOMIES AND SOCIETY TO
GROW THROUGH INNOVATION
CameronPartners is an indepedent knowledge firm specialized in innovation in its
broadest sense. Our offering includes research, advisory, implementation an
training services.
We based our work on a firm belief: innovation is today the single most important
factor to improve productivity and competitiveness of enterprises, institutions and
economies.
Since 2006, we support business enterprises, clusters, investors, governments,
agencies, universities, research and development centers and business incubators
in three interrelated fields:
Corporate
innovation
Innovation
systems
Economic
development
CameronPartners enabling growth through innovation

WE ENGAGE IN JOINT LEARNING AND DEVELOPMENT
PROCESSES WITH OUR CLIENTS
We see the changes in the economy, technology, politics and society in context. We
are rock solid in analysis and diagnosis, but refreshingly creative in exploring
options and solutions for complex problems.
OUR COMPETENCIES
Systemic understanding of innovation as a factor of the economy
Extensive experience in scientific research and technological development
Deep knowledge in the management of companies of all sizes
Application of empirical social research methods and participatory development
CameronPartners enabling growth through innovation

WE HAVE DEEP KNOWLEDGE IN SOME VERY PROMISING FIELDS
FOR THE KNOWLEDGE ECONOMY
To be able to critically evaluate the opinions of experts, we are active in scientific
research and technological development, carrying out activities that go beyond the
usual ones of a consulting firm.
AREAS OF EXPERTISE
Life sciences, biotechnology and medical sciences
Renewable energy and energy efficiency
Advanced industrial technologies (communications, automation, mechatronics,
electronics, image processing, computer vision, etc.)
CameronPartners enabling growth through innovation

HOWEVER, THE UNOFFICIAL MISSION OF THIS “PLATFORM” IS TO
SUPPORT THE DEVELOPMENT OF NEW TECHNOLOGY VENTURES
We identify interesting early-stage projects in our areas of technical expertise
We do not ask for business plans; we prefer to initiate a conversation
We help to design a business strategy working iteratively
We provide hands-on operative support in most relevant areas
We co-finance these efforts with cash generated from our consulting projects
We try to get rewarded asking for a portion of the value created
CameronPartners enabling growth through innovation

AGENDA
Our business model
The Epyxs case
Company overview
Previous history
New strategy
Development results
Current status
Some lessons learned
CameronPartners Mannheim, Germany – Concepción, Chile

COMPANY OVERVIEW
Epyxs develops and markets advanced digital protection and
forensic technologies to secure, track, trace, indentify and
authenticate goods and documents.

THE INITIAL RESEARCH PHASE WAS DRIVEN
BY CURIOSITY AND FORTUNE
1998 Prof. B. Wirnitzer from the Institute for Digital Signal
Processing of the Hochschule Mannheim began to study the
storage of digital information in raster images.
2000-
2000-2002 Wirnitzer participated in an industrial project to
store digitized audio signals on 2D-codes and begun to
develop the 2D-code with the highest storage density.
2003 Wirnitzer noticed that printed high-density 2D-Code
show different microscopic patterns and came to the idea to
use this pattern to protect documents from forgery.
2003 Slavi Bonev developed the first prototype to acquire the
stochastic pattern, to determine a signature and to evaluate
the feasibility of the new technology in laser printing.

FIRST TECHNOLOGY TRANSFER RESULTS INFLUENCED
DEVELOPMENT ACTIVITIES FOR SEVERAL YEARS
2004 Presentation of the concept at the Hannover Industry
Fair to identify use cases and potential industrial research
partners for the S2i Technology with no major success.
2004 S2i Technology was included in the database of the
Enterprise Europe Network, and discovered by an Austrian
company interested in using it to protect the content of
printed and electronic invoices.
2005 With the financial support of the Karl-Völker
Foundation the team developed a solution to protect the
content of degree certificates using the S2i Technology.
2005 MFG distinguished the solution to protect degree
certificate with the do-it.software award. The technology
was licensed to the Austrian company.

ATTEMPTS TO PROTECT IP AND FIND INVESTORS
FAILED DUE TO REDUCED MARKET KNOWLEDGE
2005 Patent management agency of Hochschule Mannheim
declined to support patenting due to lack of market
potential. The rights were transferred to Wirnitzer and Bonev.
2006 Presentation at MFG´s Heidelberger Innovation Forum
to identify industrial research partners or investors to develop
the technology to protect documents with no success.
2007 The Austrian company canceled the license contract as
commercialization efforts didn‘t succeed and fixed license fee
was considered too high.

2007 A STRATEGY TO REORIENT AND RELAUNCH THE
VENTURE WAS DESIGNED
Objectives of the new strategy:
— To create a success story for potential sponsors and investors
— To embed the venture within major social, business, technology
and/or investor trends
— To demonstrate a tougher business intention
— To create an inspiring mission and vision
— To improve the business idea iteratively on the market
— To let the market drive the technology and product development
— To brand the single technologies and the company
— To use business media as promotion multiplier

SEVERAL MONTHS WERE INVESTED TO ITERATE THE
INITIAL TECHNOLOGY, PRODUCT AND BUSINESS IDEAS
— Venture capital consultants
— MFG´s Heidelberger Innovation Forum
— Research and innovation agencies
— Trade exhibitions
— Business plan, innovation and start-up contests
— Potential end users and market channels
— Venture capital companies

END 2007 TWO FUNDING POSSIBILITIES TO FINANCE
THE FURTHER DEVELOPMENT WERE AVAILABLE
— Rich: To sell a controlling stake (50%) to a venture capital company
for at least xx M€ and commit full-time and exclusive dedication
to the venture.
— King: To sign a cooperation agreement with an industrial research
consortium, geared to further develop the technology for mass
anti-counterfeit applications.

THE JOINT RESEARCH PROJECT SHOWED TO BE
A GOOD CHOICE DURING THE FINANCIAL CRISIS
— 42 month duration (2008-2011)
— 3,5 million Euro budget
— 50% from industry partners
— 50% non-refundable grant from BMBF
— Free use of the technology for the participants during
the project
— No funds for management team

THE RESEARCH PROJECT FOCUSED ON THE
DEVELOPMENT OF THE TECHNICAL INFRASTRUCTURE
Software for
capturing
devices
Production
Equipment
Applications
and
infrastructure

… AND ON THE PROMOTION OF THE ADVANCES AND
RESULTS
peer-
7 peer-reviewed
scientific publications
Samples of packaging
and labels
International
launching events

CURRENT STATUS
— Technology passed successfully a large-scale multi-
year paid pilot test for a multinational manufacturer of
industrial goods in four Eastern European countries.
— Carrying out several paid feasibility studies for existing
and new applications with European and Asian
companies.
— Developing a new technology to support forensic
identification of high-security documents (passports,
currency notes, etc.)

AGENDA
Our business model
The Epyxs case
Company overview
Previous history
New strategy
Development results
Current status
Some lessons learned
CameronPartners Mannheim, Germany – Concepción, Chile

HOW TO CREATE SUCCESSFUL AND SUSTAINABLE BUSINESSES
FROM ICT RESEARCH RESULTS?
— Technology transfer measures has to exist during the whole research project
— Business ideas need to be validated and improved iteratively on the market
— Entrepreneurial spirits need to be motivated to work with scientists
WHAT ARE THE BOTTLENECKS THAT STOP INNOVATIVE IDEAS FROM
REACHING THE MARKET?
— The business plan is a huge hurdle for scientists and engineers
— Consultants, angel and venture investors, etc. tend to behave as inquisitors
— The entrepreneurs are the ones that risks most in this game
— There is no much support for entrepreneurs that want to create a family business
CameronPartners enabling growth through innovation

CONTACTS
MARIO CAMERON
mtc@cameron-partners.com │ +49 621 438 5477
Richard-Wagner-Str. 29
68165 Mannheim - Germany
PAULINA HENRÍQUEZ
phr@cameron-partners.com │ +56 41 220 7124
Edmundo Larenas 424-B
4070415 Concepción – Chile
WWW.CAMERON- PARTNERS.COM
CameronPartners Mannheim, Germany – Concepción, Chile