New Academy Provides Shot In The Arm For Microelectronics Industry

26/5/11

Academy aims to enable a $1bn company within 10 years

Innovation in the microelectronics sector is set to thrive thanks to a new business accelerator which launches today. The thinking behind this innovative new concept is to facilitate risk-sharing partnerships between start-ups and industry giants.

The 'European Microelectronics Academy' (EMA), founded by Mentor Graphics and NESTA, will match start-ups with established businesses that will benefit from their product. The established business will open up their manufacturing facilities to the start-up, greatly reducing the notoriously high costs (£3million or more) of testing designs in silicon, and increasing the chances of producing a first product. The start-up benefits from reduced development costs and direct links in to the supply chain, whilst the large firms directly benefit from the new product which is developed.  

The process will be led by the EMA's high profile team that have collectively generated more than $12 billion of new shareholder value in the semiconductor industry. Their expertise will be employed to seek suitable partners for established businesses via their extensive networks and to provide access to quality people to help build the start-up. 

Carson Bradbury, founder and Chief Executive of the EMA, says: "There is a mutual dependency between large and small firms in this sector. Large firms have the firepower to develop new products, and small firms are the breeding ground for innovative ideas that will grow the sector upon which the large firms thrive. By bringing the two together in win-win partnerships and applying our extensive market expertise, we are aiming to enable a billion dollar company within the next ten years.'

Libby Kinsey from NESTA says: "Innovation in the microelectronics industry is notoriously risky and expensive, which can be off-putting for investors. Through the EMA, we will support innovation via a business model which matches the needs of industry giants with the needs of hungry, dynamic early stage businesses. Ultimately, we hope that this helps to de-risk the innovation process and attract the investment needed to drive a thriving sector."

The Academy was born out of the success of Cre8Ventures, an initiative set-up by Mentor Graphics in 2003 to help scale a business development process that successfully generated new Electronic Design Automation (EDA) revenues from semi-conductor based start-ups. The aim was to attract early-stage, high-growth start-up semiconductor companies so that mentors could build early stage relationships, seed the company with its EDA tools and benefit from the future success of the start-up, when the start-up was successful.

For further information about the Academy, visit  www.emanetworks.com

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Notes to editor

For further information, please contact Jan Singleton on 020 7438 2606/ jan.singleton@nesta.org.uk

About NESTA

NESTA is the UK's foremost independent expert on how innovation can solve some of the country's major economic and social challenges. Its work is enabled by an endowment, funded by the National Lottery, and it operates at no cost to the government or taxpayer.
NESTA is a world leader in its field and carries out its work through a blend of experimental programmes, analytical research and investment in early-stage companies. www.nesta.org.uk

About European Microelectronics Academy (EMA)

Led by a high profile team that has generated more than $12 billion dollars of new shareholder value in the semiconductor industry the EMA has the goal of helping to create a new breed of microelectronic companies over the next 10 years.

Its private network flow of activity offers, 'first mover advantage' to both corporates and institutional investors whose interests centre on new shareholder contribution and de-risked, capital efficient deal flow. www.emanetworks.com