Commercialisation & Funding Universiti Malaysia Terengganu
Dec 24, 2015
Commercialisation & Funding
Universiti Malaysia Terengganu
Background of MTDC
■ Incorporated by the Government on 10 March 1992.
■ Ministry of Industry Trade and International (MITI) to Ministry of Science, Technology and Innovation (MOSTI) to Khazanah
■ The establishment was initiated by National Council for Scientific Research and Development (NCSRD).
Background of MTDC
■ Main objective of establishment was to promote technology transfer through the following :-① Commercialisation of local
research results;② Introduction of strategic
technologies to the country;③ Manufacture of products widely
used as industrial inputs.
Funding
Technology Incubation
SymbiosisGraduate Entrpreneurship
CSRAdvisory Services
Linkages
Value-added services
The Complete Equation
MVF
Young Graduates
Symbiosis Grant(CRDF)
BSF
BGF
Others
VCs /Loans /
Debt Ventures
Cubicle GarageEnterpriseEntrepreneurship
Training
Nurturing & Mentoring
Value-added Services
Business Advisory
Incubators
SEED ANGEL “SEMI-VC” VC
Training & Consultancy
MTDC’s Technology Commercialisation Pathway
Technology Transfer & Commercialisation
Grants
Promissory Notes
Hybrid – Grant and Equity
FUNDING AVAILABLE
GRANTS
Technology Transfer & Commercialisation
Commercialisation of R&D Fund (CRDF)
Technology Acquisition Fund (TAF)
CRDFCommercialisation of R&D Fund
For commercialisation activities
On locally developed technologies ie
research and development (R&Ds)
By eligible Malaysian-owned
companies.
Commercialisation of R&D Fund (CRDF)
INTRODUCTION
Commercialisation
~ a new products or production
process by which the results of
research projects are converted to
marketable products and are
commercially produced.
Commercialisation of R&D Fund (CRDF)
INTRODUCTION
Commercialisation of R&D Fund (CRDF)
OBJECTIVES
To leverage on Science, Technology
and Innovation (STI) for national
development;
To increase the commercialisation
of STI products & processes
developed by local U/RI/companies;
Commercialisation of R&D Fund (CRDF)
OBJECTIVES
To increase wealth creation &
technology content of SMEs/large
corporations via commercialisation
of R&D done by local
U/RI/companies; and
To foster greater collaboration
between universities/research
institutions and industry.
Commercialisation of R&D Fund (CRDF)
CATEGORIES
i. The company is incorporated in Malaysia;
ii. The company must be at least 51% owned by Malaysian;
COMMON ELIGIBILITY CRITERIA
Commercialisation of R&D Fund (CRDF)
iii. The R&D must have been completed successfully and commercial-ready prototype is available; and
iv. The proposed project must be tangible in nature
COMMON ELIGIBILITY CRITERIA
Commercialisation of R&D Fund (CRDF)
Commercialisation of R&D Fund (CRDF)
ADDITIONAL ELIGIBILITY CRITERIACRDF 1 CRDF 2 CRDF 3 (a) CRDF 3 (b)
Company Category
Spin-off Start-up SME Non-SME
Source of Technology
Public & Private University (IHL) / Government Research Institute (GRI)
IHL / GRI IHL / GRI / In-House
Public Sector R&D
Quantum of Funding
90% of eligible expenses, capped at RM500k
70% of eligible expenses, capped at RM500k
70% of eligible expenses, capped at RM4.0 mil.
50% of eligible expenses, capped at RM4.0 mil.
Equipments i. Equipment for Quality Control and
productionii. Maintenance of equipments Technology Cost of technology/ consultation/ training
ELIGIBILE ACTIVITIES FOR CRDF1 & CRDF2
Commercialisation of R&D Fund (CRDF)
Administration and Overhead i. Allowance for management and technical
personnelii. Rental at technology centreiii. Utilities
Servicesiv. Core raw materials
v. Advertisement and promotionvi. Certification and standard
vii.IP registration and protectionviii.Production out-sourcing
ELIGIBILE ACTIVITIES FOR CRDF1 & CRDF2
Commercialisation of R&D Fund (CRDF)
Equipment• Equipment for Quality Control and
Production
Technology • Technology/ consultation/ training
Advertisement and Promotion• Advertisement and promotion
ELIGIBILE ACTIVITIES FOR CRDF3
Commercialisation of R&D Fund (CRDF)
Servicesi. IP registration and protectionii. Product testing and standards iii. Registration of certification
ELIGIBILE ACTIVITIES FOR CRDF3
Commercialisation of R&D Fund (CRDF)
TAFTechnology Acquisition Fund
Technology Acquisition Fund (TAF)
INTRODUCTION
For eligible Malaysian companies
To acquire foreign technologies for immediate incorporation into the company’s manufacturing activity.
To avoid expensive and often risky technology development stages.
Technology Acquisition Fund (TAF)
INTRODUCTION
Acquisition of know-how / IP exploitation / rights / blueprints via one of the following methods:-
i. Licensing of technology; and ii. Outright purchase of technology
Technology Acquisition Fund (TAF)
To promote technology upgrading
through the introduction & utilisation
of technologies in the manufacturing
& physical development of existing &
new products or processes;
OBJECTIVES
Technology Acquisition Fund (TAF)
To enhance the competitiveness level
of Malaysian companies to compete
globally; and
To increase wealth creation &
technology content of Malaysian
companies via acquisition of foreign
technology.
OBJECTIVES
i. Companies incorporated in Malaysia;
ii. The company must be at least 51% owned by Malaysian;
iii. The technology to be acquired must be a registered Intellectual Property (Patent/Copyright/Industrial Design) with proven and significant sales volume;
ELIGIBILITY CRITERIA
Technology Acquisition Fund (TAF)
iv. The technology provider must not hold any equity in the applicant’s company;
v. The proposed project must be tangible in nature; and
vi.The company must have already been involved in the production, fabrication and manufacturing of relevant products.
ELIGIBILITY CRITERIA
Technology Acquisition Fund (TAF)
• Funding types
i. Cost of Technology Acquisition; or
ii. Cost of Technology Acquisition + Acquisition of M&E
• Cost of Technology Acquisition
Eligibile Activities
29
Technology Acquisition Fund (TAF)
• Acquisition of Machine & Equipment (M&E)
• Engagement of foreign individual within a specific area of expertise on process or product improvement
• Training
Eligibile Activities
30
Technology Acquisition Fund (TAF)
i. Cost of Technology Acquisition; or– Quantum Funding of up to of 70% or RM2.8million, whichever is
lower
ii. Cost of Technology Acquisition + Acquisition of M&E
*Maximum quantum to be approved for IP is capped at RM 2.4mil as 70% and M&E is capped at RM 1.6mil as 50% grant.
Funding Structure
31
Technology Acquisition Fund (TAF)
PROMISSORY NOTES
For start-up funding of technology-based start-up ie:-
New university spin off companies;
Companies started and self-funded by entrepreneurs, but without significant revenue;
Companies with high novelty/innovative products and have potential market; and/or
New companies set up with collaborative research and established market overseas.
Business Start-up Fund (BSF)
i. Start-up business with individual shareholders control 70% or more of the company’s equity.
ii. Proposed project must contain elements of development leading to commercialisation of products, processes or services.
ELIGIBILITY CRITERIA
Business Start-up Fund (BSF)
iii. Persons involved in the project should have suitable qualification or experience; management, marketing and technical.
iv. Applicants must show proof of financial capability that they can fund the portion cost not funded by BSF.
ELIGIBILITY CRITERIA
Business Start-up Fund (BSF)
v. Project must be undertaken in Malaysia.
vi. Business must be owner-operated on fulltime basis.
ELIGIBILITY CRITERIA
Business Start-up Fund (BSF)
HYBRID FUND
Objective
• Accelerate the development of local high technology companies by providing business funding to qualified grant recipients companies.
• Provides funding for the “last mile” of the R&D&C value chain.
• Ensures that qualified grant recipients are adequately capitalised during their crucial formative years to build a business track record
Business Growth Fund (BGF)
Objective
• Build enough “commercial” value in the company to make companies attractive for follow-on financing by VCs & other financing institutions.
• To demonstrate that grant recipients which have received strong market validation for their products/services are further supported to become full-fledged commercial enterprises.
Business Growth Fund (BGF)
• Offers Hybrid type of funding for the following types of company:-
i. Early stage ii. Successful Grant Graduates iii.Possesses high technology contentiv.Exhibits potential for growth.
Business Growth Fund (BGF)
• Structure of BGF is RM1m in the form of grant and RM3m as equity.
• Exit plan will be in 3 – 5 years via buy back, trade sale, IPO etc.
Business Growth Fund (BGF)
Exponential GrowthInflection
Point
GrantPhase
BGFPhase
VCPhase
Hockey Stick Growth
Summary
Mariatini OthmanAdvisory & Value-added Services Division03-2172 6101012 [email protected]
www.mtdc.com.my
Contact Details