funding opportunities for biotech innovations

Funding Opportunities for Biotech Innovations in India

Shreya Sanghvi Malik

© Shreya Malik 2015

Success of Biotech Ventures

• Complex Technology. • Scientific, Technical, Capital,

Intellectual Property, Business, Marketing and Distribution dimensions for a successful Biotechnology venture.

• Long Development Cycle from Proof-of-Concept to Commercialization.

• High Investment to Reach Market Stage.


Stages of Biotech Venture

• Conceptualization of Idea

• Pre-Proof of Concept Studies Very Early Stages

• Proof-of-Concept

• Risk Assessment Early Stages

• Lab Scale Testing

• Data Generation

• Technology/ Process Optimization Development Phase

• Validation – Clinical and Field Trials

• Product/ Process Scale-up Planning

Late Stage of Development

• Bulk Manufacturing

• Post-Commercialization Market surveys

• Technology Upgradation

Commercialization /Post

Commercialization


FUNDS!!!


Considerations for Funding

• Identify not only present capital needs but also projected future fund requirements.

• Infrastructure, working capital, proof-of-concept, prototype development, testing, validation, scale-up, clinical trials, field trials, intellectual property, market research, salary, travel, etc.

• New venture requires investment on many fronts particularly for capital-intensive infrastructure, manpower, technology costs, working capital etc.

• Its never too soon to work out financing needs down the line.


Sources of Funding for Innovation


Various Types of Government Funding


http://www.venturecenter.co.in/funding/

Key Funding Sources for Technology

Development

Department of Biotechnology (DBT)

Department of Science and Technology (DST)

Technology Development Board Fund (TDB)

Department of Scientific & Industrial Research (DSIR)

Council of Scientific & Industrial Research (CSIR)

National Research Development Corporation (NRDC)

Technology Information, Forecasting and Assessment Council (TIFAC)

Ministry of Micro Small Medium Enterprises (MSME)


EARLY STAGE DEVELOPMENT FUNDS


BIG (Biotechnology Ignition Grant)

DBT – BIRAC Scheme

Funding Applicability: Support for initial funding and mentorship to establish and

validate proof-of-concept for early stage innovative ideas fulfilling unmet needs. Projects

with translational capacity in areas i.e. biomedical devices, nano-sciences, computational

biology, green technology supported.

Eligibility Criteria: Indian companies with functional R&D laboratory or incubated in an

incubator/biotech park with DSIR recognition. Researchers, Students, Academicians and

Scientists can also apply.

Evaluation Process: Through BIG Partner…

Evaluation Criteria: Innovative concept/technology, potential impact, execution expertise

and capability, commercialization plan, etc.

Fund Disbursement Mechanism: BIG grant-in-aid is upto 50 lakhs for a time period of

upto 18 months. Fund disbursed through 5 milestone based payments. No royalty

payments. Funds may be used for conducting limited market research, working capital,

patenting costs, travel , salary, etc. No funds for infrastructure development.


PRISM (Promoting Innovations in Individuals, Start-ups and

MSMEs)

DSIR Scheme

Funding Applicability: Supports innovations in individuals, start-ups and MSMEs for

development of state-of-art new technology solutions in focus sectors such as green

technology, clean energy, smart materials, healthcare. PRISM is the erstwhile

"Technopreneur Promotion Programme” (TePP).

Eligibility Criteria: Indian citizen for PRISM Phase I and Phase II. Public funded

institutions or organizations for R&D proposals funded PRISM scheme.

Evaluation Criteria: Implementable and commercially viable, novel innovation.

Fund Disbursement Mechanism: PRISM provides grant-in-aid through milestone linked

installments.

Phase-I Category-I: Proof of Concept support upto to 2 lakh or 90% of project cost.

Phase-I Category-II: Validation/testing/patenting support upto to 20 lakh or 90% of project

cost.

Phase-II: Enterprise Incubation support upto 50 lakh or 50% of project cost.

PRISM-R&D Proposals: Support upto 50 lakh or 50% of project cost.

Evaluation Process: Through TePP Outreach cum Cluster Innovation Centre …


SBIRI (Small Business Innovation Research Initiative)


Funding Applicability: Support for early stage, pre-proof of concept research. New

indigenous technology development in agriculture, healthcare, nutrition sectors encouraged.

Eligibility Criteria: Indian companies with DSIR recognition or incubated in an

incubator/biotech park with DSIR recognition. National R&D institutions can collaborate as

partnering entities.

Evaluation Process: Call for Proposals – Area Review Panel – Technical Expert -

Committee – Presentation – IP, Technical and Financial Due Diligence – Site Visit – TEC -

Apex Committee – Project Monitoring Committee.

Evaluation Criteria: Technical strength of proof-of-concept, national/social relevance,

applicant’s credentials and expertise, commercialization potential, clarity of deliverables, etc.

Fund Disbursement Mechanism: SIBRI contributes grant-in-aid upto 80% of the cost for

projects upto 25 lakhs and upto 50% of the cost for projects 25 – 100 lakhs.

Fund disbursed through 5 milestone based payments. No royalty payments.


TECHNOLOGY DEVELOPMENT FUNDS


Funding Applicability: Support for accelerated innovative transformational technology

development with societal importance. No incremental technology supported.

Funds given under Category I, II, IIIA, IIIB and IV.

Eligibility Criteria: Indian companies with DSIR recognition. National R&D institutions can

collaborate as partnering entities.

Evaluation Process: Similar to BIPP…

Evaluation Criteria: Innovation level, Advanced high-risk technology, National/social

relevance, Commercialization potential, etc.

Fund Disbursement Mechanism: BIPP contributes upto 50% of project cost as grant-in-

aid. Funds disbursed through 5 milestone based payments.

Company will pay 5% as royalty on the annual net sales.

No cap on funding under Category I, II, IIIA and IIIB and cap of 25 crores for Category IV.

BIPP (Biotechnology Industry Partnership Programme) DBT – BIRAC Scheme


NMITLI (New Millennium Indian Technology Leadership

Initiative)

CSIR Scheme

Funding Applicability: NMITLI supports Nationally Evolved Projects (NEP) and Industry

Oriented Projects (IOP).

Low investment high risk technology development in sectors such as affordable

healthcare, food technology, sustainable energy, etc.

Eligibility Criteria: Indian companies with DSIR recognition.

Evaluation Criteria: Innovation, national importance, commercialization potential, clarity

of deliverables, etc.

Fund Disbursement Mechanism: NMITLI provides funds as grant-in-aid to public

institutions and as soft loans to private sector industry partners (3-5%).

Soft loan will be given in milestone-based installment payments.

Evaluation Process: Identified areas for technology development – Screening

Committee – High Powered Committee – CSIR Governing Body.


TDB (Technology Development Board)

DST Scheme

Funding Applicability: Supports industrial concerns and other agencies attempting

development and commercial application of indigenous technology or adapting imported

technology for wider domestic application.

Eligibility Criteria: Indian public and/or private universities/ research institutions along with

collaborating Indian companies with DSIR recognition.

Evaluation Criteria: Scientific merit, commercialization potential, measurable objectives,

national relevance, competency of research organizations, track record of industry.

Fund Disbursement Mechanism: TDB invests in equity capital and provides soft loans or

grant-in-aid in exceptional cases. The soft loan is given through installments.

The grant period does not exceed 3 years.

Evaluation Process: Applications are evaluated for their scientific, technological, financial

and commercial benefits including site visits.


DPRP (Drugs & Pharmaceuticals Research Programme)

DDPB – DST Scheme

Funding Applicability: Programme supports human and veterinary drug development for

all types of medicinal systems including exploratory drug design and drug development and

innovative process for known/generic drugs as well as crucial intermediates.

Eligibility Criteria: Any Indian company/firm engaged in drug development manufacturing

jointly with national laboratories, universities, institutes, etc.

Coverage:

Collaborative R&D Projects – Supports medicinal research including setting up of facilities,

supports joint research projects of industry-academia, 50 : 50 sharing of financial

requirements between industry and institution, research undertaken by industry is funded

100% by industry, institution share is supported jointly by government and industry.

Soft Loan for Pharma Industrial R&D Projects - Loan amount upto 70% of project cost with

simple interest of 3% and repayment of loan will be in 10 annual equal installments.

Grant-in-aid to Industry for Clinical trials - for developing drugs for neglected diseases like

tuberculosis, malaria, kala-azar, filariasis, etc.

Evaluation Process: Project proposals are reviewed by domain expert and then

considered by DDPB Expert Committee.


SRIJAN Revolving Fund

TIFAC – SIDBI Scheme

Funding Applicability: Supports commercialization of innovative product / process /

application development developed indigenously or for adapting imported technology to

wider domestic applications.

Eligibility Criteria: Start-ups, incubating companies and other MSMEs.

Evaluation Criteria: Innovation, commercialization potential, financial viability, organization

track record and competency, etc.

Fund Disbursement Mechanism: SRIJAN provide developmental loan at flexible terms &

softer interest rate.

Assistance upto 80% of the total project cost, which may not be more than 100.00 lakhs.

Company contribution - Minimum 20% of the total project cost. The loan will be disbursed

based on milestone payments.

Duration of project – not exceeding 18 months.

Evaluation Process: Technical Due Diligence by TIFAC – Financial Appraisal by SIDBI –

Company Presentation – Project Approval Committee.


TECHNOLOGY VALIDATION FUNDS


PACE (Patent Acquisition and Collaborative Research and

Technology Development)

DSIR Scheme

Funding Applicability: PACE Scheme has two elements, viz. (a) Technology Acquisition

and (b) Technology Development and Demonstration (TDD).

Supports early stage technology/IP acquisition by industries and development and

demonstration of innovative product and process technologies.

Eligibility Criteria: For technology acquisition Technology to be acquired should have

PCT filing or should be patented in any one of USPTO, EPO, JP, AU, etc.

For technology development Indian companies with DSIR recognition (SMEs).

Fund Disbursement Mechanism: For technology acquisition Licensing fee will be

determined by Expert Committee.

For technology development Funds provided to the industry is the form of secured loan

and R&D organizations in the form of grant-in-aid.

Evaluation Process: For technology acquisition Interactive workshops to identify specific

patents of interest – Expert committee – Patent acquired by DSIR/NRDC – DSIR licenses

out on exclusive/non-exclusive basis to SMEs.

For technology development Technical Expert Review Committee.


CRS (Contract Research and Services Scheme)


Funding Applicability: Support to facilitate academia – industry interaction to take forward

the scientifically established research leads of academia through validation and translation

by collaborating industry partner.

Small scale contract research, exploratory/large scale validation i.e. gene sequencing,

toxicology studies .etc.

Eligibility Criteria: Indian public and/or private universities/ research institutions along with

collaborating Indian companies with DSIR recognition.

Evaluation Criteria: Technical strength, relevance of deliverables, national/social

relevance, commercialization potential, competency of academia and industry to carry out

proposed research, adequacy of CRO infrastructure and human resources.

Fund Disbursement Mechanism: CRS provides 100% of the project cost as grant-in-aid

for research to academia and validation/translation to industry.

Funds disbursed through 5 milestone payments.

Evaluation Process: Similar to BIPP and SBIRI…


INTERNATIONAL COLLABORATION

FUNDS


INTERNATIONAL PROGRAMMES

• Bill & Melinda Gates Foundation

• Grand Challenges India in collaboration with DBT – BIRAC for thematic

areas such as agricultural products, malnutrition, child health, public

hygiene.

• Seed grant up to 1.25 cr and Transition to Scale grant up to 5 – 10 cr is

provided.

• Grant period – 18 - 24 months.

• IKP Grand Challenges Explorations in collaboration with IKP Knowledge

Park for thematic areas such as drugs, vaccines, diagnostics, devices and

delivery systems.

• Phase I funding of up to USD 100,000 (~62 lakhs).

• Grant period of 18 – 24 months.

• Wellcome Trust

• BIRAC-Wellcome Trust Joint Call in Translational Medicine in collaboration

with DBT-BIRAC.

• Grant for demonstrated validated technical proof of concept.

• Funds will be provided as 100% grant-in-aid.



• Grand Challenges Canada

• Grand Challenges Canada in collaboration with DBT to support early child

development, women and children’s health and mental health.

• Proof-of-concept as well as scape-up projects are supported.

• GC Canada has funded 80 innovations in India, total investment of $16

million CAD.

• Indo-US Science and Technology Forum

• United States–India Science & Technology Endowment Fund (USISTEF) in

collaboration with DST for innovative technology beyond idea stage, high

societal impact and significant commercialization potential.

• Priority areas are - Biomedical devices & diagnostics, nutrition products,

preventive & curative measures to improve health, agriculture.

• Grant Size up to Rs. 2.50 crores.



• Global Innovation and Technology Alliance

• Industrial R&D programmes with UK, Spain, Canada, Israel, etc. in

collaboration with TDB and CII.

• In these country-specific programmes, if one industry from India and one

industry from the other country proposed jointly to do R&D for developing a

marketable product, both the governments provided financial support up to

50% of project cost to their respective industries.

• Millennium Alliance

• Collaborative programme between USAID, FICCI, TDB funding different

stages of development for health, agriculture, clean energy, etc.

• Grant funding is between Rs. 25 lakhs – Rs. 3.5 crores as per the stage of

funding.

• International Bilateral/Multilateral Call for proposals through DBT and

DST.


PATENT PROTECTION FUNDS


PATENT PROTECTION PROGRAMMES

• Financial Assistance on Grant of Patent and Registration under

Geographical Indications of Goods, National Manufacturing

Competitiveness Council, Ministry of Micro Small Medium Enterprises.

• Registered Indian MSME will be provided financial support up to Rs.

25000/- on grant of domestic patent and Rs. 2.00 lakh for foreign patent.

• For registering under the Geographical Indications of Goods Act, one time

financial support will be up to Rs. 1.00 lakh.

• National Patent Protection Scheme, National Research Development

Corporation, DSIR, Ministry of Science and Technology.

• Financial assistance for patenting is given to individuals working in

universities, laboratories, MSMEs for protecting novel inventions.


MARKET ASSISTANCE FUNDS


MARKET ASSISTANCE PROGRAMMES

• Techno-commercial Support for Promising Inventions/Innovations,

National Research Development Corporation.

• Improvements in prototypes, field trials, preparation of pre-feasibility report,

preparation of video or animation about invention, preparation of marketing

document

• Financial support – Rs. 25,000 – 2,00,000.

• Marketing Assistance Scheme, National Small Industries Corporation,

Micro, Small and Medium Enterprises.

• Facilitate participation at international/national technology exhibitions/trade

fairs, marketing campaigns and promotion events, organizing domestic

exhibitions, buyer-seller meets, etc.

• Subsidy towards airfare, space rental, advertising, freight charges, publicity

campaigns, etc.


INCUBATOR DEVELOPMENT FUNDS


INCUBATOR DEVELOPMENT PROGRAMMES

• Bio-Incubator Support Scheme (BISS), Biotechnology Industry

Research Assistance Council, Department of Biotechnology.

• Scheme for strengthening and up-gradation of the existing bio-

incubators and also to establish new bio-incubators in strategic

locations.

• Support for Entrepreneurial and Managerial Development of SMEs

through Incubators, National Manufacturing Competitiveness

Programme, MSME.

• Under this scheme, 100 “Business Incubators” (BIs) are to be set up

under Technology (Host) Institutions over the next 4 years and each BI

is expected to help the incubation of about 10 new ideas or units.


• TDB Scheme for Seed Support to Technology Business Incubators/

Science and Technology Parks, Technology Development Board,

Ministry of Science and Technology.

• TDB provides grant upto Rs. 1 crore each over a period of upto three

years which may used to support incubated entrepreneur only for

commercializing innovations and for facility creation.

INCUBATOR DEVELOPMENT PROGRAMMES

• SEED SUPPORT SYSTEM (SSS) for Start-ups in Incubators, National

Science and Technology Entrepreneurship Development Board,

Department of Science and Technology.

• Financial assistance to STEP/TBI for product development, trials,

mentoring, professional consultancy, IPR issues, etc.


Innovative Ideation

Proof of Concept

Validation/Trials Commercialization BIG,

PRISM Phase I, SBIRI

BIPP, TDB, NMITLI, DPRP, SRIJAN, PRISM Phase II

CRS, PACE

ENABLING FUNDS – IP, MARKET, INCUBATION


Let’s Answer This…

• Who am I?

–In terms of entity

• What am I looking for?

–In terms of type and range of funds

• Where do I stand?

–In terms of stage of development of technology/idea


IMPORTANT WEB LINKS

1. http://www.dbtindia.nic.in

2. www.birac.nic.in

3. www.dst.gov.in

4. www.tdb.gov.in

5. www.csir.res.in

6. www.msme.gov.in

7. www.nrdcindia.com

8. www.dsir.nic.in


http://www.dbtindia.nic.in/

http://www.dbtindia.nic.in/

http://www.birac.nic.in/

http://www.dst.gov.in/

http://www.tdb.gov.in/

http://www.csir.res.in/

http://www.msme.gov.in/

http://www.nrdcindia.com/

http://www.dsir.nic.in/

funding opportunities for biotech innovations

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