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 :- Commercialisation of local research results; Introduction of strategic technologies to the country; Manufacture of products widely used as industrial inputs.

The Complete Equation Funding Technology Incubation Symbiosis CSR Graduate Entrpreneurship CSR Advisory Services Linkages Value-added services The Complete Equation

MTDC’s Technology Commercialisation Pathway SEED ANGEL “SEMI-VC” VC MVF Young Graduates Symbiosis Grant (CRDF) BSF BGF Others VCs / Loans / Debt Ventures Training & Consultancy Cubicle Garage Enterprise Entrepreneurship Training Nurturing & Mentoring Value-added Services Business Advisory Incubators

Technology Transfer & Commercialisation FUNDING AVAILABLE Grants Promissory Notes Hybrid – Grant and Equity

GRANTS

Technology Transfer & Commercialisation Commercialisation of R&D Fund (CRDF) Technology Acquisition Fund (TAF)

Commercialisation of R&D Fund CRDF Commercialisation of R&D Fund

INTRODUCTION For commercialisation activities Commercialisation of R&D Fund (CRDF) INTRODUCTION For commercialisation activities On locally developed technologies ie research and development (R&Ds) By eligible Malaysian-owned companies.

INTRODUCTION Commercialisation 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) 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

Commercialisation of R&D Fund (CRDF) COMMON ELIGIBILITY CRITERIA The company is incorporated in Malaysia; The company must be at least 51% owned by Malaysian;

Commercialisation of R&D Fund (CRDF) COMMON ELIGIBILITY CRITERIA The R&D must have been completed successfully and commercial-ready prototype is available; and The proposed project must be tangible in nature

Commercialisation of R&D Fund (CRDF) ADDITIONAL ELIGIBILITY CRITERIA CRDF 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.

Commercialisation of R&D Fund (CRDF) ELIGIBILE ACTIVITIES FOR CRDF1 & CRDF2 Equipments Equipment for Quality Control and production Maintenance of equipments   Technology Cost of technology/ consultation/ training

Commercialisation of R&D Fund (CRDF) ELIGIBILE ACTIVITIES FOR CRDF1 & CRDF2 Administration and Overhead Allowance for management and technical personnel Rental at technology centre Utilities Services Core raw materials Advertisement and promotion Certification and standard IP registration and protection Production out-sourcing

Commercialisation of R&D Fund (CRDF) ELIGIBILE ACTIVITIES FOR CRDF3 Equipment Equipment for Quality Control and Production Technology Technology/ consultation/ training Advertisement and Promotion Advertisement and promotion

Commercialisation of R&D Fund (CRDF) ELIGIBILE ACTIVITIES FOR CRDF3 Services IP registration and protection Product testing and standards Registration of certification

Technology Acquisition Fund TAF Technology 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:- Licensing of technology; and Outright purchase of technology

Technology Acquisition Fund (TAF) OBJECTIVES To promote technology upgrading through the introduction & utilisation of technologies in the manufacturing & physical development of existing & new products or processes;

Technology Acquisition Fund (TAF) OBJECTIVES 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.

Technology Acquisition Fund (TAF) ELIGIBILITY CRITERIA Companies incorporated in Malaysia; The company must be at least 51% owned by Malaysian; The technology to be acquired must be a registered Intellectual Property (Patent/Copyright/Industrial Design) with proven and significant sales volume;

Technology Acquisition Fund (TAF) ELIGIBILITY CRITERIA iv. The technology provider must not hold any equity in the applicant’s company; The proposed project must be tangible in nature; and The company must have already been involved in the production, fabrication and manufacturing of relevant products.

Technology Acquisition Fund (TAF) Eligibile Activities Funding types Cost of Technology Acquisition; or Cost of Technology Acquisition + Acquisition of M&E Cost of Technology Acquisition

Technology Acquisition Fund (TAF) Eligibile Activities Acquisition of Machine & Equipment (M&E) Engagement of foreign individual within a specific area of expertise on process or product improvement Training

Technology Acquisition Fund (TAF) Funding Structure Cost of Technology Acquisition; or Quantum Funding of up to of 70% or RM2.8million, whichever is lower 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.

PROMISSORY NOTES

Business Start-up Fund (BSF) 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) ELIGIBILITY CRITERIA Start-up business with individual shareholders control 70% or more of the company’s equity. Proposed project must contain elements of development leading to commercialisation of products, processes or services.

Business Start-up Fund (BSF) ELIGIBILITY CRITERIA Persons involved in the project should have suitable qualification or experience; management, marketing and technical. Applicants must show proof of financial capability that they can fund the portion cost not funded by BSF.

Business Start-up Fund (BSF) ELIGIBILITY CRITERIA Project must be undertaken in Malaysia. vi. Business must be owner-operated on fulltime basis.

HYBRID FUND

Business Growth Fund (BGF) 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:- Early stage Successful Grant Graduates Possesses high technology content 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.

Hockey Stick Growth BGF Phase Grant Phase VC Phase Exponential Growth Inflection Point

Summary

Contact Details Mariatini Othman Advisory & Value-added Services Division 03-2172 6101 012 9104073 mariatini@mtdc.com.my www.mtdc.com.my