Business Funding

TECHNOFUND GRANT BY THE MINISTRY OF SCIENCE, TECHNOLOGY & INNOVATION (MOSTI)


DEFINITION 
TechnoFund is a grant scheme which aims to stimulate the growth and successful innovation of Malaysian enterprises by increasing the level of R&D and its commercialisation. The scheme provides funding for technology development, up to pre-commercialisation stage, with the commercial potential to create new businesses and generate economic wealth for the nation.

WHO CAN APPLY
  1. Small and Medium Enterprises;
  2. Institutions of Higher Learning;
  3. Research Institutes; and
  4. Science, Technology and Innovation (STI) Agencies.

OBJECTIVES
  1. development of new or cutting edge technologies or further develop/value add existing technologies/products in specific areas;
  2. undertake market driven R&D towards commercialisation of R&D outputs;
  3. encourage institutions, local companies and inventors to capitalise their intellectual work through intellectual property (IP) registration; and
  4. stimulate the growth and increase capability and capacity of Malaysian technology-based enterprises, Malaysian Government Research Institutes (GRI) and Institutions of Higher Learning (IHL) through both local and international collaborations.

SCOPE OF FUNDING
 
The Pre Commercialisation (TechnoFund) will cover:
  1. the acquisition of technology (foreign and/ or local).
  2. the up-scaling of laboratory-scale prototype or the development of commercial ready prototype; and
  3. pre-clinical testing/clinical testing/field trials.

QUANTUM OF FUNDING
 
The quantum for each project is between RM1,500,000.00 to RM3,000,000.00 depending on the merit of the proposal.
PROJECT DURATION
 
The project duration is up to 30 months.
  • Additional 6 months is permitted for application involving IP acquisition.
  • An additional of 24 months from the maximum project duration of 30 months will be added for the post-evaluation purposes.

SELECTION CRITERIA OF THE PROJECT

i. Novelty

Uniqueness and novelty aspect of the technology/product. Applicant must conduct a Prior Art Search to verify on the patent ability aspect.

ii. Technical Feasibility

Applicant’s ability to successfully complete the project within the stipulated time.  

iii. Laboratory Proof of Concept (POC)

Evaluation of the Proof of Concept - viability, technical issues, overall direction, and budgeting.

iv. Competency of the Project Team

  • Project teams - qualified and competent members (technical and commercialisation aspects).
  • Roles and responsibilities of collaborators involved clearly defined.
  • Core business of applicant must be related to area of research.
  • Project leader must be technically fluent & competent in the related project.
  • Involvement of consultants should be justified  and details submitted.
  • Each member of the team should provide CV clearly stating their previous research as well as highlighting significant successes.

v. Credibility of Project Proposal

The project proposal must be clear, accurate and consistent with the objectives of the Pre Commercialisation Fund (TechnoFund) and have milestones and project activities that can be completed within the agreed time frame.

vii. Appropriateness of Methodology

Should provide sufficient information (clear sequence of stages & phases of the proposed methodology) to achieve the project objectives.

vii. Deliverables

Should be able to indicate clearly the type of output expected, market size, potential for commercialisation, and/ or new IPs

viii. Financial Capability

Should show proof of financial capability to finance any portion of project cost not funded by TechnoFund.

ix. Projection of the Project Costs

Detailed projection of the project costs must be provided. As for purchase of equipment and acquisition of services, all the relevant documents must be included in the project proposals for evaluation.

x. Risk

The applicant must state the possible risks (technology risk, financial risk and time risk) that may affect the implementation or completion of the project.

xi. Applicant and collaborator(s) must provide the following documents, where appropriate:

  • The applicant if a Company and/or collaborator(s) must provide the latest Forms 9, 24 and 49 (Companies Act 1965) together with the latest Annual Report; and
  • Latest Memorandum and Article of Association (MoA).
All documents should be certified by the Companies Commission of Malaysia. Foreign collaborators should provide equivalent documents.

xii. Others

The applicant and collaborator(s) must fulfil other conditions stipulated under the guidelines and policies of the Pre Commercialisation Fund (TechnoFund).

EVALUATION CYCLES
 
Every 3 month (Quarterly per year)

EVALUATION PROCESS  
FACTORS OF SUCCESSFUL APPLICATION
 
    1. Management
    2. Novelty – technology
    3. Competitor
    4. Financial Projection
    5. Cash Flow
    • Profit & Loss
    • Internal Rate of Return (IRR) [1]
    • Return on investment (ROI) [2] & Social return on investment (SROI) [3]
    6. Marketing
    7. Market Validation
    8. Business Model
    9. Competency & Competitor Analysis  

ACHIEVEMENTS ON ICT INDUSTRY


Hikayat Merong Mahawangsa



GENG: The Adventure Begins

Pre Commercialisation (TechnoFund) Guideline


(source www.mosti.gov.my)
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