CSIR Tech From Conventional Technology Transfer to ...

MissionPursue science for

global impact,

technology that enables

innovation driven

industry, and nurture

trans-disciplinary

leadership, thereby,

catalyzing inclusive

economic development

for the people of India

CSIR @80 : Vision and Strategy 2022; published

2011

RSC-CSIR Innovation, 301109

CSIR TECH : FROM CONVENTIONAL TECHNOLOGY TRANSFER TO ENTREPRENEURSHIP MODEL

Advisory Board Meeting of CSIR, New Delhi, 26 October 2013

CSIR-Tech

Scientific Entrepreneurship Scheme permitting researchers working in scientific establishments to

have an equity stake in scientific enterprises/spin offs

while in professional employment with their research

and academic organizations

Investing Knowledgebase as Equity permitting the scientific establishment to invest knowledgebase and /

or loan as equity.

TWO INITIATIVES THAT NEEDS NEW MODELS FOR EXECUTION

DSIR notification

Scientists can promote companies

Institutes/lab/scientists can

hold part or full equity in

private companies in lieu of

technology transfer fees

Implemented by

CSIR: Approved by

174th GB of the CSIR

on 11 Aug 2009

ENABLING SYSTEMS FOR ENCOURAGING SCIENTIFIC ENTRPRENEURSHIP

© CSIR-Tech Pvt Ltd 3

CURRENT KNOWLEDGE TRANSFER MODELS

• Licensing, with front end, milestone and royalty payments

• Technical Services

• Consultancy Services

• Sponsored and collaborative Research with Industry

Outcomes: Underpricing or overpricing; defaults in recovering royalty, poor understanding of markets and their ability to pay or

making a success of technology in the markets, technology failure liabilities, tendency to engage in, less painful, low end

technical or consultancy services,

CSIR-TechSHAREHOLDING PATTERN

Section 25 company, created under scheme of CSIR, Technology Business Incubator at CSIR-NCL Campus, Pune.

State Bank of India

CSIR Staff and Scientist welfare Trust

A philanthrophic Trust incorporated

under the Indian Trusts Act, 1882

80 %

10% 10%

CSIR-TechOwnership progression of CTPL

Share Subscribers 2-May-2011 18-Jun-2013 26-Jun-2013 28-Jun-2013 Year 2020 Year 2020

Dr S Sivaram 1 ~0.00% 1 ~0.00% 1 ~0.00% 0.00% 0.00% 0.00%

EDC 20,000 100.00% 20,000 25.00% 20,000 22.22% 20,000 21.98% 20,000 20.00% 20,000 19.00%

EDC Tranche 2 60,000 75.00% 60,000 66.67% 60,000 65.93% 60,000 60.00% 60,000 57.00%

CSIR-Staff Welfare Trust 0.00% 9,999 11.11% 10,000 10.99% 10,000 10.00% 10,000 9.51%

State Bank of India 1,000 1.10% 1,000 1.00% 1,000 0.95%

SBI CCD 1 fully diluted 4,500 4.50% 4,500 4.27%

SBI CCD 2 fully diluted - 4,500 4.50% 4,500 4.27%

ESOP Trust fully diluted 5,263 5.00%

20,001 100.00% 80,001 100.00% 90,000 100.00% 91,000 100.00% 100,000 100.00% 105,263 100.00%

CTPL

Incorporation

EDC invests

Rs 6 lacs to

buy 60,000

shares

CSIR Staff Welfare Trust

invests Rs 99,990 to

own 9999 shares

SBI invests Rs 10,000 for

1000 shares plus Rs 9.99 Cr

as CCD, in 2 tranches

SBI converts

CCD in 2020

to own shares

worth 10%

EDC: Entrepreneurship Development Center, Pune

CCD: Compulsory Convertible Debenture

ESOP: CTPL’s Employee Stock Option Plan-2013

ESOP 5%,

5263 shares

Dr Sivaram

transfers his

single share

to CSIR-SWT

Taking the sweat out of partnership between Industry and Academia

CSIR-EDC,

80%

CSIR-Staff

Welfare

Trust, 10%

State Bank of

India, 10%

Share Capitalization of CSIR-Tech

Vision: to create wealth out of

publicly funded science and

technology for the good of the

people of India

Activities for Value Creation

• Identify technologies, de-risk and take to market

• Bring-in entrepreneurial zeal and private

investments to accomplish these tasks

• Market, negotiate deals and assist in translating

technology into products & services

Outcomes:

-15 startups to be created in the next 4 years

-50 Tech commercial deals/yr (Avg) over

next 4 years

Future:

Open to Partnering with other publicly funded

R&D organizations


CSIR-Tech Pvt Ltd (www.csirtech.com)

Catalyzing Lab to Market Journeys

CSIR-TechCTPL – EDC AGREEMENT

• CTPL will offer a Golden Share to EDC, which will prevent any

future dilution of EDC's share to below 26% of total shares of

CTPL at any given point of time. If the EDC’s shares fall below

26%, CSIR will withdraw the use of prefix CSIR in the name of

CTPL.

- The Chairman of CTPL will be appointed by EDC/CSIR.

- CSIR will nominate up to two persons from any of CSIR’s

constituent laboratories to be additional directors on the board of

CTPL.

- CTPL will also have permanent director nominated by the

Trustees of CSIR-SWT

- The life of the agreement is 5 years. Termination by giving 6

months notice.

- The final Arbitrator of disputes, if any, shall be DG-CSIR.

Dr V. Premnath

Head, NCL Innovations

Director, Venture Center

Dr Vijay Kelkar

Padma Vibhushan Awardee

Well known Economist

Dr Saurabh Srivastava

Chairman, CA

Ex-NASSCOM

Mohandas Pai

Chairman, MGE

Ex-Infosys board

Luis Miranda

Ex-Chairman, IDFC PE

Ex-CEO, IDFC PE

Dr S. Sivaram

CSIR Bhatnagar Fellow

Ex-Director, NCL

Chairman

Amitabh Shrivastava

CEO, CSIR-Tech

Serial Entrepreneur

CEO

S.A. Thimmaiah

CGM, Corp Strategy &

New Business, SBI

Prakash Rao

GM, Private Equity,

State Bank of India

Dr Sourav Pal

Director, CSIR-NCL

Chairman, Venture Center© CSIR-Tech Pvt Ltd 9

CSIR-TECH : BOARD OF DIRECTORS

CSIR-TechPROPOSED REVENUE MODEL

– Realization of value of equity held by CTPL in a spin-out company

– Share in the revenue from licensing of knowhow

and/or licensing/assignment of patent rights.

– Share of project (typically, validation/ scale-up/ expansion of patent scope etc) funding arranged by

CTPL

CSIR-TechCSIR Tech Private Limited (CTPL)

• A company that would work closely with CSIR labs to commercialize CSIR

technologies and intellectual property

– Through creation of spin-outs (primarily)

• Identifying spin-out opportunities

• Developing them further

• Spinning them out as start-up enterprises

– Licensing technology to partners

• For-profit private limited company

– leverage private investments

– Bring-in enterprising entrepreneurs to aggressively pursue technology

commercialization

– Without being restricted or slowed down by rules governing public sector

enterprises or non-profit entities

CSIR-TechCORE ACTIVITIES

• Surveying and mining of scientific capabilities and IP residing in CSIR laboratories

so as to identify those that can be translated into products and services of value

(Opportunity identification)

• Planning, resourcing and getting done proof-of-concept studies (Technology de-

risking)

• Drafting a business plan along with the entrepreneurial team and raising/ securing

investments (Business planning and raising finances)

• Identifying and bringing together key resources – entrepreneur, technologist,

knowhow, IPR, infrastructure, strategic partners and funds (Synthesis,

aggregation, agreements)

• Spin-off and supporting the nascent business through the early stages of its

creation and growth (Virtual business incubation support)

• In cases identified for licensing, marketing technology packages and IP. Identifying

buyers and striking deals (Technology marketing)

CSIR-Tech

CSIR

Laboratory Knowhow/IPRKnowhow/IPR

Licensor

CTPL

Fees, royaltyFees, royalty

MODE OF ENGAGEMENT Non Exclusive Technology Marketing Agreement

Model similar to arrangement with NRDC.

However, mining/scouting for technology shall be more proactive/

aggressive, marketing more targeted and deal structuring/

negotiations/closure more professional.

CSIR-Tech

CSIR-up

Licensor, Start

-upCTPL

Deferred feesDeferred fees

Knowhow/IPRKnowhow/IPR Knowhow/IPRKnowhow/IPR

Equity, fees, royaltyEquity, fees, royalty

1. Sub-licensing agmt

(can include equity

terms)

2. Investment/share

holder agmt

1. Collaboration agmt

(umbrella)

2. Licensing agmt (for

each case)

MODE OF ENGAGEMENT Technology Commercialization Collaboration Agreement

This model will help CSIR labs get the benefit of equity gains/

realization without directly holding equity in spin-offs.

CSIR-Tech

CSIR Licensor,

Start-up

CTPL

Knowhow/IPRKnowhow/IPR

Equity, fees, royaltyEquity, fees, royalty

TECHNOLOGY COMMERCIALIZATION COLLABORATION AGREEMENT

When CSIR or CSIR related entities can hold equity directly in private companies, CTPL will help put in place more versatile/ flexible business models.

CSIR-Tech

1. Scientist pitches spinoff idea to CTPL

2. CTPL qualifies spinoff

idea

3. Scientist gets CSIR approval for equity

4. CTPL & Scientist (& Entrepreneur) execute

SHA

5. Scientist & Lab get DG-CSIR approval for equity

6. CTPL & Scientist finalize

business plan

7. CTPL helps

spinoff negotiate

Tech Transfer with Lab

8. CTPL helps find investor(s)

9. CTPL spurs

spinoff growth

CTPL: THE SPINOFF PROCESS


Scientist can use SES

(Scientist Entrepreneurship

Scheme) notification

CSIR-Tech



idea



SHA



business plan

7. CTPL helps

spinoff negotiate



9. CTPL spurs

spinoff growth


CSIR-

Tech

Scientist-

Promoter

Entrepre

neur(s)


Shareholding




CSIR-Tech



idea



SHA



business plan

7. CTPL helps

spinoff negotiate



9. CTPL spurs

spinoff growth


CSIR-

Tech

Scientist-

Promoter

Entrepre

neur(s)


Shareholding




CSIR-

Tech

Scientist-

Promoter

Entrepre

neur(s)

CSIR-Lab

Lab can use KFE (Knowledge

For Equity) notification

CSIR-Tech



idea



SHA



business plan

7. CTPL helps

spinoff negotiate



9. CTPL spurs

spinoff growth


CSIR-

Tech

Scientist-

Promoter

Entrepre

neur(s)


Shareholding




CSIR-

Tech

Scientist-

Promoter

Entrepre

neur(s)

CSIR-Lab

CSIR-

Tech

Scientist-Promoter

Entrepre

neur(s)

CSIR-

Lab

Investor

Lab can use KFE (Knowledge

For Equity) notification

CSIR-Tech SPIN OFF STAKEHOLDERS

CSIR-Tech

CSIR-Lab

Scientist-Promoter

Entrepreneur(s)

& Team

Investor

CSIR-Tech’s value add:

•Identify spinoff opportunity

•Define & Refine Business Model

•Develop Business Plan

•Find & Engage Entrepreneur(s)

•Assist with Lawyers, CAs, CSs, statutory

Authorities

•Negotiate & Execute Technology Transfer

& Shareholder Agreements with Lab

•Get Investment for the spin-off

•Assist business growth / provide

mentorship


CSIR-TechTalent Trends &

Insights

Ideas &

Inventions

Solution

Specification

IP Product /

Service Scope

Knowhow Strategic

Partners

Services Distribution

Channels

Infrastructure Customers

Startups &

Spinoffs

SMEs Indian

Corporates

MNCs

Innovation Complexes

CURRENT PLAYERS IN ECOSYSTEM

CS

IR L

abs

(Scie

nce &

Technolo

gy)

Mark

et

(Pro

ble

ms &

Solu

tions)

Incubators

(� Provide

GoI funds to

Startups �)

TTOs / BizDev Dept.

(� Generate Revenue for Labs for

Tech Transfer & Licensing �)


CSIR-TechTalent Trends &

Insights

Ideas &

Inventions

Solution

Specification

IP Product /

Service Scope

Knowhow Strategic

Partners

Services Distribution

Channels

Infrastructure Customers

Startups &

Spinoffs

SMEs Indian

Corporates

MNCs

Innovation Complexes

CSIR-Tech

(� Support TTO/BDD in Revenue Generation �)

(� Create Capital Gains for Labs via Equity Stakes �)

CTPL’S POSITIONING IN ECOSYSTEM

CS

IR L

abs

(Scie

nce &

Technolo

gy)

Mark

et

(Pro

ble

ms &

Solu

tions)

Incubators

(� Provide

GoI funds to

Startups �)

TTOs / BizDev Dept.

(� Generate Revenue for Labs for

Tech Transfer & Licensing �)


CSIR-Tech

Thank You

Amitabh ShrivastavaCEO, and Executive Director

CSIR-Tech Private Limited100, NCL Innovation Park

Dr Homi Bhabha Road

Pune – 411008

Phone: +91 99 00 33 1885, +91 20 6401 1026

Email: [email protected]

Web: www.csirtech.com

in.linkedin.com/in/amitabhshrivastava


Date post:	22-Feb-2022
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

CSIR Tech From Conventional Technology Transfer to ...

Documents