Program Overview

Sheryl Frame Case Manager, Commercialisation Australia

September 2012

Commercialisation Australia

• Announced in the 2009-10 Federal Budget – an important component of Powering Ideas: an innovation agenda for the 21st century

• Funding of $278 million over 5 years to June 2014, plus $82 million a year thereafter

• Objective is to build the capacity of, and opportunities for, Australia’s researchers, entrepreneurs and innovative firms to convert intellectual property into commercial ventures

• Program opened for applications on 4 January 2010

• Competitive, merit based program

Powering Ideas – Private Sector

Commercialisation Australia

Early

investigation

and basic

research

Early

Commercialisation

and later stage

Technical Work

Full-scale production

and certain marketing

activities

X X

Bridging the Gap

Commercialisation Australia Solution Providing more than just money...

Funding

Case Manager

Mentors Networks

Participant

Case Managers

26 Case Managers across Australia

• All experienced in commercialisation and business building

• Provide tailored assistance to participants

• Work with participants for duration of grant

• Collegiate network

• No fee for service for participants

Volunteer Business Mentors

• Key element of CA value add

• Seeking 3 Categories of Mentor:

– Successfully commercialised IP in the past

– Domain experts in a technical field

– Professional investors, angels, high net worth

• 2 - 4 hours per month

• Advice money can’t buy

The Story So Far…. 26 Case Managers around Australia

Funding of $126.5 million announced as at 2 November 2012

322 Participants

QLD

Case Managers – 5

Participants - 83

NSW and ACT Case Managers – 8

NSW Participants – 88

ACT Participants – 10

VIC and TAS

Case Managers – 7

VIC Participants – 77

TAS Participants – 10

WA

Case Managers – 3

Participants - 34

SA and NT

Case Managers – 3

SA Participants – 19

NT Participants – 1

Value of Grants by Key Technology

13%

10% 42%

35%

Biotechnology

$12.9 million

Software and Web

Design

$ 44.5 million

Manufacturing,

Engineering and Design

$52.6 million

Computer Systems

and Hardware

$16.5 million

As at 2 November 2012, 322 Participants have been

supported with grants valued at $126.5 million

Value of Grants by Key Market

0 5 10 15 20 25 30 35

Agriculture & Food

Business & Communications

Defence, Security & Safety

Education & Training

Energy, Mining & Resources

Entertainment, Tourism & Sport

Health & Medical

Infrastructure & Building

OEM

Automotive, Aviation, Marine & TCFAuto, Aviation, Marine and TCF

OEM

Infrastructure and Building

Health and Medical

Entertainment, Tourism

and Sport

Energy, Mining and Resources

Education and Training

Defence and Security

Business and

Communications

Agriculture and Food

As at 2 November 2012,

322 Participants have been

supported with grants

valued at $126.5 million

Grant Value ($ million)

Program Model

Multiple entry and exit points to the program

• Competitive, merit based selection process

• Assistance tailored to the needs of the participant

• Case Managers – matched with participants while they are with CA to guide them through the commercialisation process

• Volunteer Business Mentors – share insight, networks and experience as facilitated by Case Managers

Commercialisation Australia Solution

Proof of Concept

Grants from

$50,000-$250,000

50:50 funding contribution

To test Commercial Viability

(not R&D)

12 Months

Early Stage

Commercialisation Grants from

$50,000-$2,000,000

50:50 funding contribution

2 Years

To assist with bringing a new

product, process or service to

market

Advice and mentoring throughout life-cycle Provide introductions and networking opportunities

Skills and

Knowledge

Expert advice and services

up to $50,000

80:20 funding contribution

For those new to

Commercialisation

12 Months

Case Managers

Exit

Volunteer Business Mentors

Experienced

Executives

Up to $350,000 over 2

years to engage a Chief

Executive Officer or other

executive

50:50 funding contribution

Exit Exit Exit

Multiple Exits

(inc. Fast Failure, Licensing, Angel Investment, Joint Ventures, Referral to other Programs)

Australian Firms, Entrepreneurs and Researchers (via Commercialisation Offices) Entry Entry Entry Entry

Applicant eligibility – Researchers and Individuals • Must apply through a university or publicly funded

research agency (PFRA) commercialisation office or Eligible Partner Entity

• Must demonstrate appropriate access to the IP for the project

• Can only apply for the Skills and Knowledge component or Proof of Concept component

• Must be undertaking eligible activities to commercialise a new, clearly defined product, process or service

• The university commercialisation office, PFRA commercialisation office or Eligible Partner Entity becomes a party to the contract with the Commonwealth

Applicant eligibility – Companies • Must be a non tax-exempt company incorporated under

Corporations Act 2001 (with an ABN and an ACN), or an individual who will form a company if successful

• Group turnover in each of the past 3 financial years must be <$50 million for Early Stage Commercialisation grants or <$10 million for all other assistance

• Must have the ability to fund share of project costs not met by the grant

• Must have appropriate access to the IP for the project

• Must be undertaking eligible activities to commercialise a new (novel), clearly defined product, process or service

Need for Funding

• The Commercialisation Australia Board assesses applications first against this criterion

• Only applications that satisfy this criterion will be assessed against the remaining merit criteria and receive a merit ranking

• Applications must explain why it would be unreasonable of the CA Board to expect them to raise the money otherwise

Market Opportunity

• Explanation of the customer problem solved and/or what market demand the product, process or service satisfies

• Definition of the target market

• Estimation of the size of the target market

• Definition of the project IP, how it will address the market opportunity, and any protection mechanisms employed

The Value Proposition

• a clear, concise and compelling value proposition, i.e. why the customer will buy the product, process or service

– Must be relative to the to the competition

– May involve users, purchasers, influencers and other stakeholders

The Execution Plan

• Current status and immediate challenges in commercialising the innovation.

• A clear plan to overcome these challenges (PROJECT PLAN)

• Post-project plan for achieving business viability, including:

– Clear objectives for overcoming further challenges

– core elements and means to achieve profitability and return on investment (with robust projections)

– a sound intellectual property strategy.

• Explanation of what level of expertise is held in:

– commercialisation management,

– project management,

– business management and

– relevant sector/technology domain

• What role will each play in the

“project”

– This should link with the PBC,

including the percentage of time.

Management Capability

• Explanation of how the project will improve Australia’s participation and competitiveness in the global economy

• Explanation of what significant spill-over benefits will accrue to Australia and how they will come about through the conduct of the project and/or commercialisation of its results including:

– diffusion of knowledge and skills;

– diffusion of new products, processes or services;

– increased collaboration between businesses and/or businesses and research institutions

National Benefits

Application Process

• Step 1: KNOW THE PROGRAM: website, literature, etc (CIG is your rulebook for CA); self assess eligibility and merit.

• Step 2: Submit Stage 1 Application Form (Download from the website email to CAWA@innovation.gov.au)

Contacting Us

Website: www.CommercialisationAustralia.gov.au

Hotline:

13 22 56

Email:

cawa@innovation.gov.au

Sheryl Frame: sframe@westnet.com.au

Marcus Christian: marcus@capra.com.au

Chris Farquhar: chris@reparo.com.au