Facilities & Funding Opportunities EU-Asia Biomass Best Practices & Business Partnering Conference 2012 1
1. Background of MTDC 2. Services Offered Funding Business Startup Fund (BSF) Commercialization of R&D Fund 1 (CRDF1) Commercialization of R&D Fund 2 (CRDF2) Commercialization of R&D Fund 3 (CRDF3) Technology Acquisition Fund (TAF) Business Growth Fund (BGF) Incubator Advisory 3. Closing 2
Background of MTDC Incorporated by the Government on 10 March 1992. Previously under the jurisdiction of Ministry of International Trade and Industry (MITI) before it was transferred to Ministry of Science, Technology and Innovation (MOSTI). The establishment was initiated by National Council for Scientific Research and Development (NCSRD). Main objective of establishment was to promote technology transfer through the following :- Commercialization of local research results; Introduction of strategic technologies to the country; Manufacture of products widely used as industrial inputs. 3
Services Offered MTDC Incubator Funding: BSF, CRDF, TAF, BGF. Advisory 4
Services Offered: Funding - BSF Objective: Business Start-up Fund (BSF) established to fund new start-up technology-based companies. Target Group: Entrepreneurs with feasible tech-based businesses; Business that can be up-scaled, with high growth potential and sustainable. Basic Eligibility Criteria: Spin-off company incorporated under the Companies Act 1965; Minimum 70% owned by a Malaysian entrepreneur or group of entrepreneurs; The proposed technology to be commercialised must be from one of the Priority Technology Clusters; The product must be significant in novelty/innovation. Funding Structure: Flexible funding via Convertible Notes (CN) and/or Preference Shares at a maximum of RM5.0 million or 90% of the recognised project cost or whichever is lower. CN repayment period from the first month of 4th year on monthly basis over 5 year period. 5
Services Offered: Funding CRDF1 Objective: Commercialisation of R&D output from public and private University (PPU) / Government Research Institute (GRI) by a Spin-Off company ("Syarikat Terbitan University, STU"). Target Group: Spin-off companies from PPU/GRI Basic Eligibility Criteria: Incorporated under the Companies Act 1965; At least 51% owned by Malaysian; The proposed technology to be commercialized must be from one of the Priority Technology Clusters identified by MOSTI excluding ICT; The R&D must have been completed successfully and commercial-ready prototype is available; and The proposed project must be tangible in nature. Funding Structure: CRDF 1 provides funding in the form of partial grants with a maximum of RM500,000 or 90% of the eligible expenses (whichever is lower). 6
Services Offered: Funding CRDF2 Objective: Commercialisation of R&D output from Public and Private University (PPU) / Government Research Institute (GRI) by a Start Up company. Target Group: Start-up company Basic Eligibility Criteria: Incorporated under the Companies Act 1965; At least 51% owned by Malaysian; The proposed technology to be commercialized must be from one of the Priority Technology Clusters identified by MOSTI excluding ICT; The R&D must have been completed successfully and commercial-ready prototype is available; and The proposed project must be tangible in nature. Funding Structure: CRDF 2 provides funding in the form of partial grants with a maximum of RM500,000 or 70% of the eligible expenses (whichever is lower) 7
Services Offered: Funding CRDF3 Objective: Commercialization of R&D by SME & non-sme Target Group: SME : A company with <RM25 million annual turnover or <150 employees; Large company' : A company with >RM25 million annual turnover and >150 employees; Public Listed's associated companies will be categorised in accordance to the structure of its shareholders; and State agency's associated companies will be categorised in accordance to the structure of its shareholders. Basic Eligibility Criteria: Incorporated under the Companies Act 1965; At least 51% owned by Malaysian; The proposed technology to be commercialised must be from one of the Priority Technology Clusters identified by MOSTI excluding ICT; The R&D must have been completed successfully and commercial-ready prototype is available; and The proposed project must be tangible in nature. Funding Structure: CRDF 3(a) funding in the form of partial grants with a maximum of RM4,000,000 or 70% of the eligible expenses (whichever is lower); and CRDF 3(b) funding in the form of partial grants with a maximum of RM4,000,000 or 50% of the eligible expenses (whichever is lower) 8
Services Offered: Funding TAF Objective: to facilitate eligible Malaysian companies in the acquisition of foreign technologies for immediate incorporation into the company's manufacturing activity. TAF's partial grant enables companies to avoid expensive and often risky technology development stages. Target Group: Small & Medium Enterprise (SME) Basic Eligibility Criteria: Incorporated under the Companies Act 1965; At least 51% owned by Malaysian; Has less than RM25 million annual turnover or having less than150 employee; The proposed technology acquisition must be from one of the Priority Technology Clusters identified by MOSTI excluding ICT; The technology to be acquired must be a registered Intellectual Property (Patent/Copyright/Industrial Design) with proven and significant sales volume; The technology provider must not hold any equity in the applicant's company; and The proposed project must be tangible in nature. Funding Structure: funding in the form of partial grants with a maximum of RM2 million or 50% of the eligible expenses (whichever is lower). 9
Services Offered: Funding BGF Objective: Ensure that grant recipients which have received strong market validation for their products/services are further supported for business expansion Build enough "commercial" value in the companies to make them attractive for follow-on financing by VCs & other financing institutions. Target Group: Companies that have previously received any government grant and successfully completed it, AND Have received strong market validation for their products/services, AND Can build a case for business expansion with funding assistance from BGF. Funding Structure: Acts as a bridge towards VC/bank financing. Up to RM4 million in total per company, 25% of which is grant and the balance 75% being equity investment Only the grant portion is disbursed initially, subject to the company achieving predetermined milestones (e.g. revenue target etc) in the next 12 months, only then the equity portion is disbursed. 10
Services Offered: Incubator OBJECTIVES MTDC s technology centers are developed and managed under the Technology Development Clusters (TDCs) program. Aimed at developing knowledge-based industries with the creation of hightechnology companies through TDCs. The TDCs have the following criteria : Create closer links and understanding between universities and industries. Designed to encourage the formation and growth of technology-based businesses. 11
Services Offered: Incubator UPM-MTDC TECHNOLOGY CENTRE UTM-MTDC TECHNOLOGY CENTRE UKM-MTDC TECHNOLOGY CENTRE Cluster : ICT & Biotech Cluster : Biotech & Life Sciences Cluster : Biotech TECHNOLOGY COLLABORATIONS NURTURED AND FOSTERED BY MTDC 12
Services Offered: Incubator What We Offer - Good infrastructure facilities especially communications network; Industry clusters based on the relative strength of each university; Specialised training institutes; Management company/ Advisory services; Provision of support and value-added services; Funding assistance(grants/vc); Technology Consulting. Shared facilities (lab equipment); Direct involvement of universities 13
Services Offered: Incubator UPM-MTDC MTDC TECHNOLOGY CENTRE Characterization Total area: 39 acres No of companies : 38 GAMBOR 14
Services Offered: Incubator UPM-MTDC MTDC TECHNOLOGY CENTRE 3 15
Services Offered: Incubator UKM-MTDC MTDC TECHNOLOGY CENTRE Characterization Total area: 10 acres No of companies : 17 GAMBAR GAMBAR 16
Services Offered: Incubator UTM-MTDC MTDC TECHNOLOGY CENTRE 17
Services Offered: Advisory What We Offer - Structuring collaboration programs with universities/research institutions Market Development Fund Raising Business Development R&D & Technology Management IPR Management Project Management (Operations Plans) Government Regulatory Financial Planning & Sourcing Development of Business Plan 18
Closing Contact Us Web : www.mtdc.com.my General Line : +6 03 2172-6000 Fax : +6 03 2163-7549 BSF : Rosliza Zulkafli (rosliza@mtdc.com.my) CRDF, TAF : Syed Hisham Alwi (syed.hishamalwi@mtdc.com.my) BGF : Zainol Rashid (zainolrashid@mtdc.com.my) Incubator : Zaidi Che Man (zaidi@mtdc.com.my) Advisory : Mair Nasser (nasser@mtdc.com.my) 19
THANK YOU 20