Bouquet

1. Final Evaluation – Spin-off in Chemistry Bouquet Nanofragrance all day long Christopher EhlertŁukaszCzekańskiLeilyJavidfard InêsRocha Stéphane Vranckx Aleksandra Zielińska

2. Our know-how: Nano-encapsulation • Large variety of potential applications, including cosmetics • New (unpublished) results from REQUIMTE (Porto University) • Completely safe / bio-compatible Similar patent: http://tinyurl.com/patentA1 (European Patent 1034839A1)

3. Our product: Spray-on perfumenanocapsules • May be used on clothing or directly on skin • Safe on contact and by inhalation • Doesn’t stain fabric • Delivers perfume: • Gradually during the day thanks to natural friction and nanocapsule permeability • Whenever desired by gently rubbing the skin or fabric

4. Our market: Brazilian middle class • Biggest market for cosmetics 6029.5 million US$ and growing • « Social media capital of the world »(> 90 million regular internet users) • Strong disposition to buying online • Online advertisement and sales • Large 20-45 middle-class market willing to pay ≈100 € per 50 mL of perfume http://tinyurl.com/cosmeticosbr « Brazil is already the largest fragrance market in the world », Cosmeticos.br (2011) http://tinyurl.com/marketingbrazil « Breaking into Brazil », Laura Snoad, Marketingweek.co.uk (2012) http://tinyurl.com/socialmediabr « Brazil: A Social Media Marketers' Gold Mine », Christian Arno, Socialmediatoday.com (2013)

5. Our model • However, high Brazilian import tax • Production in Brazil • R&D in Portugal: • Research infrastructures • Need to buy a fragrance • Need for spray bottles, … • Need to build a network!

6. Locations and collaborations • Portugal academicresearch: • Professor Ana Cristina Freire • Portugal cosmeticcompanies: • Castelbel (distribution to Brazil!) • ACH.Brito • Preliminary contacts in Brazil: • PatríciaSgarbi Lima, Cosmetic (Natura) • Ruandro Victor Knapik, Representative R&D (Boticarío Group)

7. Locations and collaborations – Portugal • Collaborations with other institutions Material Center of University of Porto (CEMUP) Dr Carlos Moreira de Sá Electronic Microscopy Unit (UME) Dr. Pedro Tavares Centre for Nanotechnology and Smart Materials (CeNTI) Eng. Ana Ribeiro Nanosctrutured Material and nanotechnologies Laboratory (NanoLab)  Eng. Patrícia Carvalho  Colep  Eng. Sofia Costa 

8. Business Plan • Family • Friends • Researcher’s Grants Proof of concept Patent Prototype • Manager • Accountant • Scale-up, production • R&D • Lawyer Improve the team Investors Scale-up Market

9. Funding, collaborations and contests Invention Innovation Transfer of Technology Incubators Contests

10. Skillsneeded in ourspinoff → Hiresomeonewithknowledgeof relevant laws and regulations in Brazil and Europe

11. Perspectives • Marketing targets: travelers • Beyond internet sales in Brazil, expand to: • World market • Sales in shops • R&D: • Other applications of nanocapsules

12. Acknowledgments • We thank all those who helped us build and improve this project through constructive discussion: • Salvatore Majorana • Cristina Freire • All professors of the SoSMSE school

13. Additional information

14. Whycreate a spinoff? • Interestingresearchresultwithpractical application • Potentiallybig return on time/money investment • Even in case of failure, incredibleprofessionalexperience: • Intimateknowledge of the innerworking of a business • New experiences, far fromusualacademicwork • Personaldevelopment • Createourownnetwork

15. Intellectualproperty • Nanocapsules (unpublished research result)= our main intellectual property • Patent the process of encapsulating products in this specific kind of nanocapsules • Protection of our original results • Possible licensing • Later on: potential potenting of new processes • Logo, commercial name, … : to be trademarked • Patents should cover at least Europe and Brazil http://www.inpi.gov.br/portal/ http://tinyurl.com/patentA1 European Patent 1034839A1 http://tinyurl.com/patentB1European Patent 1034839B1 http://tinyurl.com/patentAB1European Patent 1029587A1

16. IP protection - Why not trade secrets? • Often used by small companies instead of patenting, but: • High risk of accidental or voluntary diffusion(if somebody leaves the company for a higher-paying job, …) • Our original results are our biggest asset • Need to be protected, even at high financial cost • In Brazil, Europe, …

17. Our team • Small company  Specific roles, with flexibility • Complementarity of our skills with slight overlap • Allows for temporary replacement of one person

18. WhyPhDs? • Experience in research • Strong problem-solving skills • Used to work in multicultural and multidisciplinary teams • Adaptative and flexible • Able to see very long projects through • Fast learners with good organizational,time management skills • In our case: very diverse expertise (nanomaterials, organic chemistry, …) http://tinyurl.com/PHDsEnterprise « Un docteur? Une vraie plus-value pour l’entreprise! », References.be (2011)

19. Locations and collaborations – Portugal • Requimte • Semi-private laboratory working in collaboration with Porto University • Use of their infrastructures for our initial R&D • Master and PhD Students with their own grants • Contact: • Professor Ana Cristina Freire

20. Spray manufacturers • Manufacturer of cosmetics, personal care, beauty, homecare and consumer healthcare products

21. Fragrances • Most perfume brands don’t produce their own fragrances • Bought from specialized companies! • Possible creators of our fragrance: • Castelbel • Givaudan • Firmenich • IFF • Symrise • Takasago • … http://tinyurl.com/fragranceLeaders «2008 - 2012 Flavor & Fragrance Industry Leaders », Leffingwell & Associates

22. Someother applications of nanocapsules • Cancer treatment: Watersolublepolymershells that deliver directly into the nucleus a protein that only kills cancer cells • Self-healing materials: healing of cracks in microelectronics, polymer coating, … • Food: modification of textures, flavorings, colorings, shelf-life, … • « Nutraceuticals »: encapsulation in lipids or polymers of substances that enhance nutrition • …

23. Composition of the nanocapsules • General name for capsules of 10 nm - 1000 nm • Various polymers: • Polybutylcyanoacrylate • … • Lipids http://onlinelibrary.wiley.com/doi/10.1002/ffj.2039/abstract

24. Health issues • Possible cause of allergies • Uncertainties about health effect • In the US: products containing nanocapsules need to be FDA-approved • Likely reason why the « big names » didn’t commercialize nanocapsules-based perfumes http://tinyurl.com/healthEU «What are potential harmful effects of nanoparticles? », European Public Health http://tinyurl.com/nanohealth2 Gwinn, M. R.and Vallyathan, V. Environ Health Perspect. 2006 December; 114(12): 1818–1825.

25. Health issues (allergies, uncertainty…) • Special care will have to be taken to ensure respect of health regulations • Health effect depends on the size, composition (esp. Surface), and possibly shape of the nanoparticles • For the purpose of this work: assumed to be solved http://tinyurl.com/healthEU «What are potential harmful effects of nanoparticles? », European Public Health

26. Biggest causes of spinofffailures • Too focused on R&D, immature technology • Lack of entrepreneurship / finance experience… http://www.statisticbrain.com/startup-failure-by-industry/

27. Biggestfactorsincreasingspinoffsuccess • Innovative product / production process • Entrepreneurial and managerial experience • Network of support and expertise • Joint ventures with other companies • Establishing professional (non-academic) management http://tinyurl.com/nyasspinoff« Predicting Spinoff Success », Chris Hayter , New York Academy of Sciences (2013) « Success Factors of Corporate Spin-Offs », Alexander Tübke (2010) - ISBN-10: 0387242252

28. Inês Rocha: Manager Coordinate the R&D Nearly finished the PhD Potential funding Experience in leading small scientific groups Management skills Create business plan Knowlegde in nanomaterials Coordinate cooperations Erasmus for Young Entrepreneurs Portuguese language Leadership on organization meetings http://www.erasmus-entrepreneurs.eu/

29. ŁukaszCzekański: R&D Break down complex problems into simpler parts Production of original researchresults Resolution of original problems Organicchemistry Experience in research Nanocapsulesynthesis Analytical chemistry Quality management Finish Ph.D. (1 year) Teaching and communication Contribution to mass production Flexible and adaptative Set the salaries

30. Christopher Ehlert: Accountant Break down complex problems into simpler parts Calculate business predictions Commercial accounting principles Calculate the price of the product Mathematical knowlegde Experience in finance Order machines Perform simulations Acquire money Masters in Economics Solvay Business School (1 year) Analyse and order numerical data Reduce the cost Stop Ph.D. Use open source software Set the salaries http://www.solvay.edu/masters-en-sciences-economiques-%C3%A0-finalit%C3%A9-business-economics

31. LeilyJavidfard: Marketing and sales Knowledge of R&D Polymerengineer Specialized in coatings Experience in marketing Effective marketing Sales engineerexperience (1 yearatResinfam) Product benchmark Marketing Communication CAM Foundation (Online course) Communication skills Exportation strategies Creativity Finish Master Online advertisement http://www.camfoundation.com/diploma-marketing-communications

32. Stéphane Vranckx: Scale-up, production Problemsolving (esp. Optimization) Privatesectorexperience (6-monthinternship) Scale up production Teamwork, Leadership Experience in scale-up and mass production Minimize production costs Perform simulations Privatesectorexperience 2nd year Master ÉcoleCentrale Paris « Help to decision and optimization of Industrial and Logistic Systems » Oral and written communication Production team management NearlyfinishedPh.D. in PhysicalChemistry http://www.ecp.fr/

33. Aleksandra Zielińska: Public relations Get in contract with other people/companies Cosmetic, chemical and medical knowledge Build networkGetfunding Convince other people Handle with different mentalities Good communicator Responsible for the chemical materials Foreign languages Contact cooperating companies, interships Composition of fragnances International experiences Get overview of the market Quality management

34. Skillssought for in our new recruit Required knowledge Additional assets Experiencewithother Spinoffs/startup Patent law Europe, Brazil Safetyregulations for chemicalcompanies Cosmeticregulations Europe, Brazil Taxation Portugal, Brazil Experience in cosmetics or chemicalscompanies English Portuguese/Brazilian Knowledge of Brazilian culture and market

35. Technicalfeasability • We assume we have original and encouraging results for a new kind of biocompatible (safe) nanocapsule • « Proof of concept » • Unpublished results  Patentable • The idea of using nanocapsules containing perfumes and other cosmetics has been investigated by other cosmetic companies: • L’Oréal • Gemm’innov • … http://tinyurl.com/patentA1 European Patent 1034839A1 http://tinyurl.com/patentB1 European Patent 1034839B1 http://tinyurl.com/patentAB1 European Patent 1029587A1

36. Perfume sales • Places where perfumes are purchased (2004): • 72% in specialized shops / grands magasins • 18% in supermarkets • 9% by direct sales • 1% in pharmacies • Current trend: increased sales through the internet, esp. in Brazil PPT Presentation by Loïc Torres, Master in Chemistry (provided by Ivan Coste-Manière)

37. Distribution • Initially through the internet • Unusually high volume of internet shopping in Brazil • High internet penetration in our target demographics • Online ads, viral marketing campaign, … • Later: through usual distribution channels • Specialized stores, supermarkets, … • Network of contacts and collaborations PPT Presentation by Loïc Torres, Master in Chemistry (provided by Ivan Coste-Manière)

38. Marketing • Selling arguments: • High-tech • Unique properties • Made in Brazil • Name: « Bouquet » • French word, but also used in English, Portuguese, German, … • Used both for wines and flowers • Strong association to good smells/tastes • Association to France, « luxury » products, people with refined tastes, … Bouquet

39. Marketing – Celebrityendorsements • Focus on fashion models, actors and sportspersons • Upcoming Olympics / World Cup • Most popular celebrities in Brazil: http://tinyurl.com/BrCelebrities « Brazilian celebrities List », lists.lucywho.com (2013)

40. Sales • Initially: internet-based B2C model • Large internet penetration in our target demographics • Unusual predisposition to online shopping • Online advertisements • Viral marketing • Later: transition to retailers • Possibility through Castelbel? • Portuguese company distributing in Brazil • Requires a network of Brazilian companies http://tinyurl.com/brgrowth «Brazil's E-Commerce Is Booming » Ricardo Geromel, Forbes.com (2012)

41. Brazilianmarketanalysis • Population of Brazil: ≈ 195,000,000 • Lots of young people with: • Internet • Smartphones(> 1/inhabitant) • Conversion rate of the Brazilian Real (R$): • ≈ 0.340 € • ≈ 0.447 US$ http://populationpyramid.net/ http://tinyurl.com/SalaryBrazil «Salary Survey in Brazil », Salary Explorer, (2013)

42. Brazilianmarketanalysis • Average salary: • Best paying jobs: http://populationpyramid.net/ http://tinyurl.com/SalaryBrazil «Salary Survey in Brazil », Salary Explorer, (2013)

43. Brazilians and internet • Largest number of internet users in South America(and growing) • Fast adopters of social media • Unusually strong tendencyto buy online

44. Characteristics of ourtargetmarket • Perfume users looking for something new • Live in urban areas, esp. in hot countries • Not necessarily « rich », but ready to spend good money on good perfume • Unwilling/unable to discreetly put perfume during the day • Includes men who want to smell good,without willing to be perceived as feminine • Knowledgeable about style

45. Potential future marketing targets • Business(wo)men • Need to feel fresh even when they have a lot of meetings in a row (esp. in hot countries) • Travelers • Need to feel fresh during long plane travels… but cannot bring liquids! • Large number of travelers expected in coming years: World Cup (2014), Olympics (2016)

46. Packaging • Sets the product apart, makes it look « classy » • General ideas of shape • Evoking the high-tech nature of the product (Molecules…)  Men • Evoking its unique properties  perfume that works « all day long »(Hourglass, …)

47. Competition: Perfumes in Brazil • Best feminineperfume sales in Brazil: • J'adore (Dior) • Carolina Herrera (Carolina Herrera) • Flower by Kenzo • Hypnose (Lancôme) • Euphoria (Calvin Klein) • All in the ≈ 100 €/50 mLprice range(299 R$/50 mL) https://www.npdgroup.co.uk/wps/portal/npd/uk/home/ http://www.sepha.com.br/

48. (Pre-)Seed capital • Small contribution from F&F&F • Contest • Exposure to potential investors • Potential prize money • Erasmus • Grants from researchers

49. Erasmus Entrepreneurship • Exchange european program • Goal: Have young entrepreneurs learn from experienced ones from the EU Develop skills to run their businesses http://www.erasmus-entrepreneurs.eu/

50. Start of our network • General information about spinoffs: • Salvatore Majorana • Academic with link to Portuguese cosmetics: • Professor Ana Cristina Freire • Portugal cosmetic companies: • Castelbel (distribution in Brazil!) • ACH.Brito • …