commercialisation & funding universiti malaysia terengganu

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 9104073mariatini@mtdc.com.my

www.mtdc.com.my

Contact Details