Funding Opportunities for Developers Muhammed Sayed · Muhammed Sayed. 2 TIA Act No. 26 of 2008...
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Funding Opportunities for Developers Muhammed Sayed
Transcript of Funding Opportunities for Developers Muhammed Sayed · Muhammed Sayed. 2 TIA Act No. 26 of 2008...
Funding Opportunities for Developers
Muhammed Sayed
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TIA Act No. 26 of 2008
“…stimulating and intensifying technological innovation in
order to improve economic growth and the quality of life of al l
South Africans by supporting the development and exploitat ion
of technological innovations.”
“…the application in practice of creative new ideas, which in cludes
inventions, discoveries and processes by which new product s and
services enter the market and the creation of new businesses .”
TechnologyIdeas
TechnologyInnovation
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The Innovation Chasm…TIA’s Strategic Challenge
Source 1- http://comps.fotosearch.com/comp/FSA/FSA479 /school-books Source 2- http://images.veer.com/IMG/PIM G/MPP/1664420_P.jpg
Copyright Reserved - Doug Sanyahumbi 2011
Industry
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Basic Research Applied Research Tech Development Commercialisation
IP V
alue
Lowered Risk/More certain Return
High Risk/Uncertain Return
Partnerships(e.g. IDC, NEF)
Partnerships(e.g. NRF)
Focus of TIA financial and non-financial offerings: Across the innovation chasm, o perating with the required flexibility along the in novation value
chain through mobilising and leveraging national, r egional and international partnerships
TIA’s Positioning Along The Innovation Value Chain
Proposed TIA Support
S. Duma 5
TIA Sectors
Agro
Health
Industrial Biotech
Advanced Manufacturing
Energy
ICT
Mining
Biotechnology Sectors Industrial Sectors
ICT SECTOR STRATEGIC FOCUS AREAS
(under development)
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TIA’s Support Mechanisms
Financial Support:
Industry Matching Fund
Start-up/Equity Fund
Technology Development Fund
Youth Development Fund
Idea Development Fund
Non-financial Support:
Business Advisory & Support Services
Human Capital Development Support
Engineering Services
Research Support
Funding
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Industry Matching Fund
� The aim of the fund is to partner with economically active companies
� Open to Entrepreneurs & SMME’s with incentives (mor e generous terms)
to partner with Science Councils, Higher Education Institutions
� Funding is typically provided as matched funding fr om any source
� Financial instruments being Debt (prime), Preferenc e Shares or Royalty
(Any of these may be convertible to shares)
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Startup/Equity Fund
� The purpose of the fund is to invest in entrepreneu rs or fledgling start-up (<3
years, not yet profitable) who may partner with ot hers
� No matching funding requirement but some prior cont ribution and/or sweat
equity required
� Financial instruments could be primarily Equity (26 % - 49%) in combination
with Debt (prime) and/or Preference shares. Conver tible Royalty in rare cases.
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Idea Development Fund
� The purpose of this fund is to assist existing or potential in dividualentrepreneurs and SMEs in the development of ideas to enable furtherinvestment by TIA or others.
� The Fund shall be managed to:• fund entrepreneurs with ideas or prototypes that require as sistancewith the development of a fundable proposals/business plan s forTechnology Innovation; and• to assist entrepreneurs and SMEs in financing intellectual propertyregistration and maintenance costs.
� Some sweat equity required & Financial instruments Royalty (may beconvertible)
� The Fund will be a limited resource made available to the best SouthAfrican ideas
� TIA may elect to provide the funding in the form of a direct payment to an arm’s length service provider where appropriate
Youth Technology Innovation Fund
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YTIF Overview
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YTIF Offerings
SABS services for product certification• R100 000
Business coaching• 160 hours
Use of TIA Technology Stations/Platforms• R250 000
Intellectual Property protection • R150 000
Stipend for Inventors • R60 000 per person per annum• 2 years • 4 people
Incubation services at recognised TIA partner Organisations• 2 years
YTIF offers vouchers for following services:
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Assessment Criteria
Technology
Innovativeness
Solution to
specific
national or
provincial
problem
Socio-
economic
impact
Team
competency
and ability
Technology
Soundness
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Funding Instruments
HEIs / Science Councils/
Large Companies
Fledgling Companies
Entrepreneurs
SMEs
Development Commercialization
Idea
Dev
elop
-m
entF
und
Industry Matching Fund
Startup/EquityFund
Technology DevelopmentFund
TIA FUNDS – FINANCIAL PRODUCTS
Youth Development Fund
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TIA Investment Criteria• Strong alignment with the TIA mandate, Corporate and Sector Strategic objectives
• Stage of technology development is beyond basic research (post-proof of concept)
• Attractive commercial opportunity (market & industry)
• Sustainable competitive advantage e.g. IP protection
• Technology-based product/service/process offering must have
o strong potential for market capitalisation
o strong value proposition – solution someone is prepared to pay for
• Business proof of concept i.e. viable and robust business case
• Feasible business model i.e. all components in place to deliver on the value proposition
• Strong Team: relevant business & technical expertise, experience, industry connectedness
• Potential for high socio-economic impact – addresses national imperatives e.g. job creation
• Strong potential to enhance industry competitiveness
• Presence of an industry commercialisation partner where relevant
• Co-Investment opportunity presented to allow risk-sharing
• Short to medium time to market (~3 yrs)
S. Duma 19
Private Sector Seed funding for ICT
http://www.angelhub.co.za/ R1m to R10m
http://www.google.co.za/umbono/ $25k to $50k
http://invenfin.com/ R2m to R20m
http://www.knifecap.com/
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THANK YOU
