MTDC Grants Application Consultant

MTDC's CDRF, TAF, BGF and BSF Grants



PatentAgentip offers you its expertise in the application of Malaysian Technology Development Corporation (MTDC) funds. It will use its wide experience in both market research and advance business modelling to help you craft that out-shining business proposal in your application for the many grants offered by MTDC. The business proposal will incorporate doable plans and suitable go-to-market strategies.



Commercialization of Research & Development Fund (CRDF) from MTDC


a) CRDF is a commercialization grant intended to assist local companies to bring about the commercialization of their products. It is offered to both SME's and public sector R & D entities.

b) CRDF 1 : Commercialization of R&D output from public and private University (PPU) / Government Research Institute (GRI) by a Spin-Off company.

c) CRDF 2 : Commercialization of R&D output from Public and Private University (PPU) / Government Research Institute (GRI) by a start-up.

d) CRDF 3(a) : Commercialization of any local R&D by a Small & Medium Enterprise (SME).

e) CRDF 3(b) : Commercialization of public sector R&D by a non-SME.


Criteria:

* R & D has been completed successfully
* Commercialization-ready prototype is available
* Proposed Technology is from one of Priority Technology Clusters identified by MOSTI excluding ICT
* The Proposed product is tangible in nature (non business idea)

Criteria for CRDF 3a (any local R&D by SME)
a) The company is incorporated under the Companies Act 1965
b) The company must be at least 51% owned by Malaysian
c) The company has less than RM25 million annual turnover or having less than 150 employee
d) The proposed technology to be commercialized must be from one of the Priority Technology Clusters identified by MOSTI excluding ICT.
e) The R&D must have been completed successfully and commercial-ready prototype is available.
f) The proposed project must be tangible in nature.

Criteria for CRDF 3b (public sector R&D by a non-SME)

a) The company is incorporated under the Companies Act 1965
b) The company must be at least 51% owned by Malaysian.
c) The company has more than RM25 million annual turnover and having more than150 employee.
d) The proposed technology to be commercialized must be from one of the Priority Technology Clusters identified by MOSTI excluding ICT.
e) The R&D must have been completed successfully and commercial-ready prototype is available.
f) The proposed project must be tangible in nature.


Funding Quantum (Partial Grant)

a) CRDF 3(a) provides funding in the form of partial grants with a maximum of RM4,000,000 or 70% of the eligible expenses (whichever is lower)
b) CRDF 3(b) provides funding in the form of partial grants with a maximum of RM4,000,000 or 50% of the eligible expenses (whichever is lower)


What is fundable?

a) Equipment- Cost of the purchase of equipment for Quality Control and Production
b) Technology- Cost of technology/ consultation/ training
c) Advertisement and promotion campaign
d) Services:-
i) Cost of IP registration and protection
ii) Cost of product testing and standards
iii) Cost of registration of certification

Project duration-2 years (Implementation plus Monitoring)


Technology Acquisition Fund (TAF)

TAF is a fund to help Malaysian companies in the acquisition of foreign technologies for use in the company's manufacturing activity. TAF's partial grant enables companies to avoid expensive and often risky newer technology developments.

The acquisition of technology could be in the form of acquiring know-how / IP exploitation / rights / blueprints via one of the following methods:

a) Licensing of technology
b) Outright purchase of technology


Funding Quantum

TAF provides funding in the form of partial grants with a maximum of RM2 million or 50% of the eligible expenses (whichever is lower).

Eligible expenses

a) Cost of Technology Acquisition i.e. for Licensing of Technology
b) Outright Purchase of Technology Only.

Project duration- 2 years (Implementation plus Monitoring)


The Business Growth Fund (BGF) is a supporting fund by providing follow-on funding to successful Grant Recipient companies. The fund provides hybrid grant-equity funding which acts as a transition and a bridge from grant to venture capital (VC) financing. The financial assistant is a mix of two components :-

a) a grant portion
b) an equity portion that is similarly structured but more flexible than a VC financing.

The grant portion is to be disbursed to finance the tail end of the Technology Development Phase; while the equity portion is disbursed only upon the fulfillment of the grant milestone and upon starting of the initial phase of the business building phase.


Objectives:-

a) Accelerate the development of local high technology companies by providing business funding to qualified grant recipients companies.

b) Provides funding for the "last mile" of the R&D&C value chain.

c) Ensures that qualified grant recipients are adequately capitalized during their crucial formative years to build a business track record

d) Build enough "commercial" value in the company to make companies attractive for follow-on financing by VCs & other financing institutions.

e) To demonstrate that grant recipients who have received strong market validation for their products/services are further supported to become full-fledged commercial enterprises.


mtdc business growth fund approvals
MTDC Business Growth Fund recipients by sector.
,br>
Business Start-up Fund (BSF) is to fund new start-up technology-based companies. The Fund incorporates elements of loan and equity, offering companies flexible funding via Convertible Notes (CN) and/or Preference Shares.

Objectives:

a) to support and encourage entrepreneurship
b) creation of new strategic businesses that are important and potentially scalable
c) and funding of supporting companies within a technology eco-system.


Target Group

Entrepreneur with feasible tech-based businesses
Business that can be up-scaled, with high growth potential and sustainable.


Eligibility Criteria

a) Spin-off company incorporated under the Companies Act 1965
b) Minimum 70% owned by a Malaysian entrepreneur or group of entrepreneurs
c) The proposed technology to be commercialized must be from one of the Priority Technology Clusters
d) 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 recognized project cost or whichever is lower.


Funding Conditions- Convertible Notes repayment period from the first month of 4th year on monthly basis over 5 year period.


mtdc business start-up approvals
MTDC Business Start-up Fund recipients by sector.