Investments in nanotechnology based applications have to meet a number of criteria:

· Strong and protected IP

· Commercial understanding of the potential market for applications and focus on the one or two markets which are most likely to generate revenues initially (necessary due to resource constraints)

· Build a management team more akin to traditional industry than a technological company, such as software or telecom hardware provider, and which is relevant for each phase of the company’s development

· Investors which can support the investment financially and operationally especially early on as management capacity is lacking and needs to be built up coherently

· Cross border and cross industry strategy from the very beginning due to the need to fully exploit the IP base either through partnerships, licensing or joint venture agreements

These ingredients need to be present as a whole and not individually and therefore investors need to have the ability to assess, support and intuitively judge their presence. This requires investors with strong technological, operational, financial and cross border skills and experience as well as a relevant international network. The multi disciplinary nature of nano-scale applications requires the skills enumerated above to assess technological and inherently the commercial risks early on, IP worthiness and potential markets and so on. In simplistic terms the Dakota team will have to assess and decide on the following points regarding any investments:

· Is it true?

· Is it good enough?

· What are the key drivers and sensitivities (commercial and technological)

· Is it realistic? (commercially and technologically)

· Is it optimised (commercially and technologically)?

· What is the strategy going forward (commercial, IP and technology)?

· What are the likely changes in markets/ trends in the next 3-5 years?

· What skill sets are required in the company’s management team at various phases of growth (pre prod, industrialisation, production, sales etc..)?

· What are the likely exit scenarios and how do we prepare for them efficiently?

Furthermore, because the deal flow is and will continue to be, almost exclusively, spin offs from Universities and research centres, the need to have continuous relationships with scientists and technology transfer offices is an essential and integral part of the Dakota model rather than just a luxury. An ever-increasing number of Universities and Research centres are embarking on programs of international cooperation. They have done so for several reasons:

· Need to be competitive outside of their domestic markets as excellence is increasingly judged on licensing revenue and spin outs criteria

· The very fact that IP is now the currency and hence the dissemination of research findings is much more ring fenced

· The need to fully exploit IP on a global basis rather than merely administering it

· The continuing pressure from governments and the European Commission to emulate the US model of job creation through innovation in a consistent manner and the incentives associated with these actions

In order for these relationships to be established, developed, nurtured and worthwhile the Dakota team needs to be credible vis-a vis these people on a technological, operational and international level.

Dakota’s management team has been assembled with these requirements/criteria in mind, not because it was convenient to do so but because it was necessary.

We have been able to forge relationships and attract attention not merely because we can be a future source of funding but because we have demonstrated to our counterparts a clear and thorough understanding of technology and the requirements to successfully develop and grow early stage spin offs as well as the problems faced by Universities and Research centres in creating, consistently, spin outs and associated IP.

The cross cultural and international aspect of Dakota’s management team not only insures the ability of the team to access an extensive international network to help future portfolio companies but also the ability to put together, from the very beginning, international syndication for investments and reinforce the international scope necessary for efficient IP exploitation and the creation of exit opportunities.