Case studies

Cambridge Resonant Technologies Ltd and Sureflap

Irritated as yet another stray cat helped itself to the food in his kitchen, Cambridge physicist Dr Nick Hill saw that a simple and elegant solution could be achieved through the application of his revolutionary RFID technology. This provided the basis for a successful consumer product that would generate a valuable source of revenue.

Nick set up Cambridge Resonant Technologies to develop his OnTune™ RFID technology, which improves on current RFID performance by offering ultra low power consumption, detuning resistance, and outstanding range. The technology overcomes many of the current limitations of RFID transmitters and receivers and has huge market potential with multitude of applications.

It was while he was thinking about the applications that Nick had the idea for SureFlap, a secure cat-flap which recognises individual cats by their microchip implants, allowing passage only to specific animals and keeping others out. He used his own business model, licensed IP from Cambridge Resonant Technologies and set up a separate company to exploit it. Both companies are virtual tenants of St Johns Innovation Centre.

“Things really started moving in 2008,” says Nick. “I’d met Walter Herriot at SJIC and had the benefit of his counsel. As a result, in the summer of that year, Peter Hornby suggested we be put forward for the Cambridge Enterprise Conference press event.”

SJIC has run technology press events for around 8 years, with the last two being held in parallel with the Cambridge Enterprise Conference, also organised by SJIC. The event showcases around a dozen early-stage companies from the region and enables journalists to see the technology first hand and talk to the people who have developed it. Participants have seen the resultant press coverage in outlets ranging from national papers to niche trade publications, regional press and broadcast media, and a wide range of websites and blogs.

“It was great! It couldn’t have been better for us,” says Nick. “We got exceptional press coverage including a slot on the lunchtime BBC news. It increased our exposure and was fantastic when we went on to have discussions with potential investors.”

Nick attempted to raise funds for both companies, but found that while investors were keen to back Cambridge Resonant Technologies – which was a ‘typical’ Cambridge technology start-up – they were less keen to put money into cat-flaps.

“I believed that SureFlap had huge potential in the growing consumer pets market.  We had a window of opportunity for the product so decided to focus on this.

“We called off the funding round and began to focus instead on growing SureFlap organically, through sales.”

The company has certainly grown, and less than a year later has already sold over 10,000 units – through the website, veterinary practices and independent pet shops.

“Having St John’s Innovation Centre as an address has been great,” says Nick. “They handle all our post and we can use the meeting and conference rooms which looks much more professional than meeting in a hotel or worse, at home!

“The staff are incredibly helpful. We feel in control of things when we hold meeting here – we know where everything is, and it just works. I’ve recommended the Star Service to everyone!”

Nick has big plans for his growing cat-flap empire, but believes that the relationship with SJIC will remain strong.

“I doubt we will move into offices here, as we don’t actually live locally, but I expect we will start to use more elements of the virtual tenancy package. It’s a really fantastic service.”

E-Stack

E-Stack Ltd provides low-energy ventilation systems that utilise principles of natural air flow and mixing to refresh air and maintain a comfortable ambient temperature year round. The company was formed as a spin-out from the University of Cambridge in 2006, in order to commercialise research carried out at the BP Institute.

Shaun Fitzgerald and Andy Woods, Directors of E-Stack, spearheaded the research that proved that in a well insulated building, the heat generated by computers, lighting and occupants is sufficient to keep the temperature above 20°C without additional heating.

“The two big challenges for natural ventilation are drafts in winter and overheating in summer,” comments Shaun. “We have cracked both these problems with an air management strategy that assists mixing in winter and displacement flow in summer.”

The technology is patented by the University, and E-Stack has exclusive rights to use and exploit it. Unlike simple, manually controlled ventilation, E-Stack’s system is managed by a programmable logic controller and responds to variations in temperature and CO2 levels, ensuring that ventilation is reliable and efficient, and that minimal energy is expended on heating and cooling.

Shaun believes that becoming a tenant at SJIC gave E-Stack the opportunity to focus on its technology without worrying about the day-to-day logistics.

“All the worries about telecoms, electricity and gas bills, rates and so on, were all removed".

“We were fortunate that BP decided to support E-Stack in the beginning, and having our accommodation and funding taken care of meant that we could really focus on developing the product, identifying the appropriate markets, and getting it deployed into buildings.”

E-Stack’s low-energy ventilation system has subsequently been installed in schools around the UK, and the company has won multiple awards – In 2008 it won ‘Most Enterprising New Market Entrant of the Year’ at the Euromoney and Ernst & Young Global Renewable Energy Awards, and took the Low Carbon Award and the Innovation Award at EEEGR’s Energy Innovation Awards. In 2009 E-Stack won the Cambridge News Business Excellence Award for Business Innovation and was a finalist for Innovation of the Year in the Building Services Awards.

Shaun believes that getting the business fundamentals right is the key to early success, regardless of the technology you’re working on. He advises: “Make sure that contracts are in place for everything you do from day one, and that any changes are agreed in writing – it makes everything much easier later!

“It sounds obvious, but spend as little as possible! We’ve done this in most areas – for instance we only spent negligible amounts on office furniture to start with.

“Finally, get marketing as early as possible. It’s never too soon to get your company’s name out there, and it can help with early sales, and also with fundraising when the time comes.”

For now, E-Stack is growing steadily, and values the support that SJIC provides, and the opportunity to expand within the centre. “We can stay in SJIC and are able to move to bigger office units as we grow,” says Shaun.

Media Managers

Alistair Wayne established Media Managers in 2003 to launch the first specialist media planning and buying consultancy service in the East of England. The company offers advertising campaign planning, media buying and marketing strategies across both traditional and digital media.

The Media Managers team combines national and international with regional media knowledge, following experience gained in major London-based global agency groups and working at senior levels within the media. Media Managers has been a tenant at St John’s Innovation Centre since the company was founded. Alistair explains why:

“The St John's Innovation Centre is a really strong brand and we think that association is extremely helpful. There are a range of really outstanding benefits attached to working there,” he says.

“Clearly, networking opportunities are first class and the staff is always extremely helpful. We really like access to professional advice like finance and banking in particular.

“The location is ideal, as we are just outside the centre of Cambridge and close to the main road network, and there is plenty of parking for visitors and clients. It doesn’t feel like serviced offices, but more like a focal point for all that is exciting about being in business in Cambridge!”

Media Managers has achieved rapid growth and now has a multi-million pound turnover. But Alistair believes the company’s biggest break came before it was even founded!

“I identified a business proposition for which there was clear evidence of a market which had great potential but no competitors” he says. “The market still has that need and there is still no competition!”

He looks back fondly on the company’s early days.

“Opening a bank account was a huge milestone,” he says. “Then getting some working capital through an exceptional manager at Barclays and then winning our first clients.

“We opened offices in Norwich in 2007, which have been hugely successful, and in early 2009, we launched a digital division, which is the only digital specialist outside of a major city which offers comparable depth and range of services to the major established players. Few marketing consultancies have our capability of integrating traditional advertising with digital advertising and online marketing.”

Alistair offers deceptively simple advice for budding entrepreneurs:

“Make sure you have a proposition the market needs and will pay for,” he says. “Be open and honest with your bank manager, and make sure customer care is at the core off all your business activities.”

Media Managers has aggressive plans for the future, including a national roll-out across the UK. But Alistair sees a continuing role for SJIC in the company’s future.

“SJIC will be in our future, without doubt,” he says. “It is a hub for our business and I can't see how we could find anywhere else with the same complete package.”