1. Discussion Meeting: TAPI as a possible Venture Capitalist

2. AGENDA TAPI’s current Mandate Venture Financing Program
Concept of Venture Capitalist (VC)
Comparative Discussion (VFP vis-a-vis VC)

3. TAPI’s Mandate
Created by virtue of Executive Order 128 on January 30, 1987
Serves as implementing arm of the Department of Science and Technology (DOST) in promoting the commercialization of technologies and marketing the services of the other operating units of the Department
Provides grants and/or venture financing assistance for new and emerging projects
Administer the Invention Development Assistance Fund (IDAF) and the Inventors Guarantee Fund (IGF) for assisting inventors for invention-related activities and commercialization of inventions
Assist technology generators, inventors, and researchers avail of the laboratories and other facilities of the Research and Development Institutes including DOST Regional Offices and other government agencies, offices and instrumentalities
Accredit and recognize inventors’ associations throughout their activities.

4. Venture Financing Program
Aims to Accelerate the commercialization of new and emerging technologies
Provides funding support to start-up and expansion projects
DESCRIPTION
Created to facilitate the institute’s mandate of providing grants/venture financing to new/or emerging projects
BACKGROUND
Improve Viability of start-up projects
Enhance competitiveness of start-up/expansion projects
OBJECTIVES

5. Venture Financing Program
Financial Assistance to cover cost of acquisition/fabrication of relevant production equipment
Cost of Raw Materials for unserved POs (PO Financing Facility)
COVERAGE
Maximum of 2 Million pesos per project
COST
MSMEs (Start-ups of Expansions)
Sole, joint or corporations
Accredited Cooperatives
QUALIFIED PROPONENTS

6. CONCEPT OF VENTURE CAPITAL
Financing/ Investment high and new technology based enterprises
Unsecured Risk Financing
Investors join as co-partners
Can provide support at any stage of business/production cycle
Seed financing and development financing

7. FEATURES OF VENTURE CAPITAL
HIGH RISK
HIGH TECH
Equity Participation and Capital Gains (direct purchase of shares
Participation in Management
Illiquid Investment (no repayment)

8. Comparative Discussion
FEATURES
VENTURE FINANCING
VENTURE CAPITAL
Nature of Assistance
Financing Assistance for equipment acquisition
- Financing Assistance for Capital Growth/ Gains
Nature of Company to Support
Start-ups and Expansion Projects
- Start-ups
Repayment
With Repayment scheme (0% Interest)
- No repayment (concept of equity gains based on shares)
Management Involvement
No involvement
- Involvement in Management. One seat on the company’s board of investor and directors
Involvement in Stages of Development
Early Stage for Start-ups
Development Stage for Expansion Projects
- Early Stage till development Stage for Start-ups
GAINS
No Gains (Investment is repaid as released0
- Capital Gains (Gains as the company develops)

9. Points for Consideration
TAPI is currently implementing the Venture Financing Program (VFP) following the Institute’s Mandate
The VFP is only limited to assistance for technology acquisition whereas VC provides assistance to a firm for capital growth and development.
The VFP’s assistance is limited to 2M, being a VC requires a large amount of investment funds to fully support a start-up company