portugal international outreach current funding opportunity
TRANSCRIPT
PortugalInternational Outreach
Current Funding Opportunity
Portugal International Business Hub 2014
National Park Peneda Gerês
Palácio das Cardosas, Porto
INTRODUCTION
Renee• Caduceus Technology Partners, LLC• Baylor College of Medicine - P.A. graduate• MS – Science & Technology Commercialization –
international innovation/commercialization program - IC2 University of Texas Business School (in conjunction with Portugal)
• Part of LVAD -partial artificial heart R&D team• Mixed medical, business, and financial market
backgrounds (founder of an NASD Investment Advisory firm)
• Provides international innovation consulting, development, startup, cultural & commercialization assistance
• Toured international incubators (Netherlands, Belgium, Portugal, Germany),
• On international medical device conference panels (Portugal, Spain)
• Screens & evaluates innovations, develops strategies, IP & global research, hire & manage professionals, provides prototype development, project management, VC & investment preparation
• Built international network of innovation and commercialization specialists and managers
Diogo• Venture Capital – management & closing
deals • Grupo Lena - conglomerate• MBA, BSc Biotech• Conceived, negotiated and closed
several investment project deals for different R&D centers and companies
• ($28 M raised; $5.4 M under project analysis; $60 M under VC analysis)
• Manages, writes grants, business plan and development, strategy
• Last 2 years worked on 23 financial incentive projects (88% success rate)
• Most Recent project 2014 : 12.5 million-dollar South African High Tech plant investment in Portugal
Porto
WHY PORTUGAL ?
2014 www.doingbusiness.org
P o l i ti c a l– Politically Stable
– Gov’t seeking direct
investments into Healthcare
– Seeking global growth
– Very Favorable business
environment
G e o g r a p h y
– Friendly & Safe
– Part of European Union
– Gateway to ~250 M Portuguese
speaking people
– Gateway to EU, Brazil, Africa and
Latin America markets
– Advanced Telecommunications
Network superior to USA
WHY PORTUGAL ?
Economic
– Ability to utilize both EU and Portugal
grants
– Porto , Portugal belongs to EU
priority region for incentives
– Business and Tax incentives - (CAPEX,
R&D, internationalization, etc)
– Labor funding incentives
– Lower Outsourcing and Labor costs
Human Resource
– Well-equipped R&D Institutions
– Highly skilled, motivated, well
educated workforce
– Future outsourcing opportunity for
global growth
– Underutilized well-trained PhDs
– Existing relationships with innovation
executives, incubators and academia
WHY PORTUGAL ?
GDP (purchasing power parity) (2012 est.)
$250.6 billion The World Fact Book CIA
Population inhabitants (2012) 10.6 M AICEP Portugal Global
Health expenditures (2010) 11% of GDP AICEP Portugal Global
Health Sector Turnover (2010) $36.14 billion Porto Business School
R&D Health Sector Workers (FTE) (2011) 6,686 Portuguese Science Statistics
Health Sector Researchers (FTE) (2011) 6,354 Portuguese Science Statistics
Health Sector PhDs (no.) (2010) 2,797 Portuguese Science Statistics
Health Sector R&D Investment (2011) $510.3 million Portuguese Science Statistics
Total Researchers in R&D (per million people) (2010)
Portugal (4,301) Ireland (3,230) Euro Area (3229) Germany (3,979)
The World Bank Development Indicators
Economy and Health
Music Hall by Rem Koolhaas, Porto
Business Advantages
– Interest free loans incentives– Grants and loan-grant conversions (matching)– CAPEX incentives– Business tax incentives– Politically stable– Friendly eager workforce– Strong IT and telecommunications
Following Slides Deal With Examples of Funding Incentives
Normal business funding opportunities:
grants, tax free loans, tax incentives, tax credits, loan grant conversions, etc.
Portugal Assumptions
Available Funding Mechanisms
1st Year 2nd Year 3rd year…… …… ……… nth year
Potential Model
Portugal Startup CAPEX
Portugal HR. New Hiring
Portugal Tax Credits
Portugal R&D
European Commission
Portugal Assumptions
Available Funding Mechanisms
1st Year 2nd Year 3rd year…… …… ……… nth year
Example• For each 1.00 M-dollar eligible Investment (Equipment,
Installation, etc)• 0.45 -0.65 M-dollar financial Incentive (Loan). 3- year grace
period. No Interest . No banks! It may be converted up to:0.33 - 0.48 M-dollar grant (Subsidy)
Each following year one may apply, whether competitive and innovative investment is needed
Potential Model
Startup CAPEX
PortugalAvailable Funding Mechanisms
1st Year 2nd Year 3rd year…… …… ……… nth year
example South African Recently Approved Project• .Sector: Car Supplying High Tech Industry• .Capital Origin: South Africa• .Investment Size (total investment costs): 12.48 M USD• .Jobs to be created during 2 years: > 60 • .Approved Incentives (loan) : 5.16 M USD• .Convertible part (subsidy): 4.12 M USD
Potential Model
Startup CAPEX
PortugalAvailable Funding Mechanisms
1st Year 2nd Year 3rd year…… …… ……… nth year
example• For each 10 hired people (1 Manager, 4 PhD (2 PI), 2 Research
Assistants, 1 sec, 2 Business Developers) • During 36 months• Average salary 2,608 dollars/ month. Total HR Cost for the
company for the 3-year period: 1.37 M dollars• Totally grant (subsidy): 0.29 M dollars (approx 21%) • New and initial hirings can be funded through R&D projects
after and during that period
Potential Model
HR. New Hiring
Portugal Available Funding Mechanisms
1st Year 2nd Year 3rd year…… …… ……… nth year
2 ways• From 10 to 20% of CAPEX Maximum Annual Deduction on
taxable amount. • From R&D costs tax credit up to 1.95 M dollars
Potential Model
Tax Credit
PortugalAvailable Funding Mechanisms
1st Year 2nd Year 3rd year…… …… ……… nth year
example• 1.3 M-dollar R&D Project• 0.52 M to 0.78 M-dollar Grant (subsidy)• One may submit several projects...Independent + conjoint• Covered Expenses: HR, Reagents, components, specific
equipment and software, patent costs, scientific and training activities costs,….
Potential Model
R&D
PortugalAvailable Funding Mechanisms
1st Year 2nd Year 3rd year…… …… ……… nth year
example• The new company may participate with European Peers for
direct European Funding• 5.85 M-dollar R&D Project• 4,5 companies and institutions from 3 countries
Potential Model
European Commission
Portugal funding Key Funding Interests
1. Economic Development2. Creates potential for jobs 3. Specific interest in:
*Healthcare industry
*Energy industry*Wireless & wearable*Telemedicine*Security*Any manufacturing
These are EU funds set aside for certain specific areas in Europe for increased initiatives.
Caduceus has a partner in Portugal who has experience and success with these economic development grant applications. We will work together closely as a team on these initiatives.
These funds can be used for joint development and internationally within their criteria.
A Portuguese company entity would need to be set-up, which we will assist with.
R&D collaborations with universities are also available.
Advantageous Portugal Funding
Available Funding Mechanisms
SUMMARY
Example for a 3-year period• A new company $10 M investment size
$3.4 M grant (if milestones achieved) • with 10 People hired
$0.29 M grant • $1.3 M research project per year
$1.95 M grant• Total $5.64 M grant
• Plus tax credits for the following years. No corporate tax for a while (depending on the business and initial investment)
• Funding request are available <$500K USD and much more than $10M USD
Potential Model
SUBSIDIZED Future Growth
USA
EUROPE
PortugalHub
LATIN AMERICA
Romantic Porto
Port Wine Douro Valley
Port Wine Douro ValleyNational Park Peneda Gerês
Presented for consideration by
Renee White, MS, PA
Caduceus Technology Partners, LLCwww.CaduceusTechnology.com
281-391-9883
Please contact us to schedule a meeting for more information.
NEW GRANT APPLICATIONS OPEN IN OCTOBER 2014