CONFIDENTIAL ZFZ MTDC © MTDC’s 20-year Experience in Accelerating Commercialisation Mariamah Hj Daud 20 May 2013

Was incorporated on 10 March 1992 as a VC company 100% owned by Khazanah Nasional Berhad (One of Malaysia’s Sovereign Fund) Objectives:- -To implement the commercialisation of research results of public universities/research institutions -To encourage the growth of technology-based companies -To act as a catalyst to the growth of the VC industry MTDC has since then became the country’s leading agent of commercialisation providing grants and soft loans as well as incubation space. These services are complimented with nurturing and other value-added services Background of MTDC

Roles:- To identify, finance and develop potential companies in strategic technology areas; To focus on commercialisation of public sector research results; and To identify and transfer emerging and strategic technologies for adoption by industries. Background of MTDC

MTDC Journey (9MP) 2011 (10MP) 2013 (10MP)

Venture Capital Commercialisation was undertaken via VC structure Focussed on public sector Invest in early stage commercialisation company MTDC in 1992 (6MP)

 Venture Capital  Technology Center UPM-MTDC Technology Center  Grants Commercialisation of R&D Fund (CRDF) Focus: Pre-commercialisation activities Technology Acquisition Fund (TAF) MTDC in 1997 (7MP)

 Venture Capital  Technology Center UPM-MTDC Technology Center UKM-MTDC Technology Center  Grants Commercialisation of R&D Fund (CRDF) Focus: Pre-commercialisation activities Technology Acquisition Fund (TAF) Technology Acquisition Fund for Women (TAF-W) MTDC in 1997 (7MP)

 Venture Capital Early stage commercialisation company, expansion, mezzanine MTDC in 2001 (8MP)

 Technology Center UPM-MTDC Technology Center UKM-MTDC Technology Center UTM-MTDC Technology Center MTDC in 2001 (8MP)

 Grants Commercialisation of R&D Fund (CRDF) Focus: Pre-commercialisation activities Technology Acquisition Fund (TAF) Technology Acquisition Fund for Women (TAF-W) MTDC in 2001 (8MP)

Venture Capital Grants (CRDF/TAF1 & TAF2 Technology Centers Value Added Services Technology Evaluation MTDC in 2006 (9MP)

 Grants Commercialisation of R&D Fund (CRDF) Focus: Commercialisation activities Under CRDF, commercialisation refers to a process by which the results of research projects are converted to marketable products and commercially produced. Technology Acquisition Fund (TAF) Note: TAF was divided into two categories: (i) TAF1 (ii) TAF 2 (Formerly known as TAF-W)) MTDC in 2006 (9MP)

 Value Added services (VAS) To develop, nurture and stregthen technological capability of technopreneurs to meet global challenges Training, Business Development, Access to other financing options) MTDC in 2006 (9MP)

 Technology Evaluation Objective : TO IDENTIFY POTENTIAL TECHNOLOGIES at local universities and research institutes that are ready for commercialisation, evaluations are carried out at the institutions by MTDC. - Projects with commercial partners are advised to apply for CRDF - Those without are encouraged to participate in business matching sessions or to seek pre-commercialisation funds or even R&D funds from other sources. - The recommendations and advice given during these sessions helped the TTLO to formulate IP and technology transfer strategies for the projects. MTDC in 2006 (9MP)

Venture Capital Grants (CRDF/TAF1 & TAF2 Technology Centers Value Added Services Technology Evaluation Comm Workshop MTDC in 2007 (9MP)

Was introduced to help increase the understanding of technology transfer and/or licensing practitioners, researchers as well as technopreneurs on the relevant processes of commercialisation Topics: Market validation, business model, technology transfer or licensing agreements, intellectual property management and even pitching skills. Scorecard: To-date, a total of 500 participants from 34 universities, research institutes and ministries have been trained by MTDC under this programme (scientists, researchers, entrepreneurs, TTO Officers and policy makers from the local universities, research institutes, start-up and spin off companies, government agencies and ministries). Commercialisation Workshop) MTDC in 2007 (9MP)

Venture Capital Grants (CRDF/TAF 1 & TAF2 Technology Centers Value Added Services Technology Evaluation Comm Workshop Symbiosis (FRIM) MTDC in 2008 (9MP)

Symbiosis Programme FRIM-MTDC  Ten companies registered between December 2008-January 2009;  19 technopreneurs UKM-MTDC  Ten companies registered in November 2010;  10 technopreneurs created  One UKM Symbiosis company have generated revenue UTM-MTDC  Ten companies registered in April 2011;  10 technopreneurs created  Three UTM Symbiosis companies have generated revenues UPM-MOHE-MTDC  Ten companies registered in December 2011;  10 technopreneurs created  One UPM Symbiosis company have generated revenue USM-NCIA-MTDC  Ten companies registered between December 2011-January 2012;  20 technopreneurs created  Technology Transfer activities are ongoing

MTDC in 2011 (10MP) Venture Capital Grants (CRDF/TAF1 & TAF2 Technology Centers Value Added Services Technology Evaluation Comm Workshop Symbiosis (FRIM/UTM/UKM) Hybrid Funds (BGF/BSF) Market Validation

MTDC in 2011 (10MP) Business Growth Fund (BGF) “To bridge the financing gap between the early stage of commercialisation and venture capital financing for high tech products, the Government will set up a Business Growth Fund with an initial allocation of RM150 million. The aim of the fund is to support these companies until they can generate sufficient commercial value to attract venture capital financing and other forms of financing.” - PM DATO’ SRI MOHD NAJIB in tabling the Tenth Malaysia Plan on 10 June 2010

MTDC in 2011 (10MP) Business Growth Fund (BGF) BGF is a Hybrid Fund:- Acts as a transition and bridge to VC financing Financial assistance in two forms:- - Grant; and - Equity (Same structure but more flexible than conventional VC) Grant is disbursed to finance the tail-end of technology development phase Equity is disburse only upon fulfillment of the grant milestone and upon the start of the initial phase of business development.

MTDC in 2011 (10MP) Business Start-up Fund (BSF) BSF is for seed funding of technology-based start ups. Under BSF definition, a start-up is an early growth company, involves in technology commercialisation activities and ready to bring their products to markets:- 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.

MTDC in 2011 (10MP) Market Validation Fund (MVF) Market Validation Fund (MVF) was introduced under 2012 Budget with the objective to identify and ascertain that products are commercialisable and market-driven before they are offered to companies for commercial undertakings. To-date, a total of 390 technologies from USM, UM, UKM,UPM, UTM,, UIA and UiTM have been evaluated.

MTDC in 2012 (10MP) Venture Capital Grants (CRDF/TAF1 & TAF2 Technology Centers Value Added Services Technology Evaluation Comm Workshop Symbiosis (FRIM/UTM/UKM/UPM/USM) Soft Loan Hybrid Fund (BGF/BSF) Market Validation Knowledge Management

MTDC in 2012 (10MP) Knowledge Management Knowledge Management (KM) has been established since March Through the 20 years, MTDC has accumulated a wealth of data, best-practices and lessons learnt on commercialisation and technology transfer in Malaysia. KM offers a resource centre with a portal on knowledge that facilitates sharing of the information to all stakeholders – policymakers, practitioners and entrepreneurs

Conclusion MTDC provides a complete range of funding to support the growth of technology-based companies in Malaysia. Industries are able to commercialise R&D findings from Uni/RIs or R&D done in-house at a cheaper rate by leveraging on MTDC funding mechanism. A successful catalyst for commercialisation of R&D result and promoter for acquisition of technology. Establishment of Technology Centres strengthening and enhancing collaboration and strategic networking between industries and RIs and creation of technopreneur and technology- based companies. With Symbiosis Program, Universities/Research Institutions have an alternative avenue to bring research finding/technologies to the market; more technopreneurs are created and more technology- based companies are established.

The Complete Equation