CSIR TECH FROM CONVENTIONAL TECHNOLOGY TRANSFER TO ENTREPRENEURSHIP

CSIR TECH : FROM CONVENTIONAL TECHNOLOGY TRANSFER TO ENTREPRENEURSHIP MODEL Missi n Pursue 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 Advisory Board Meeting of CSIR, New Delhi, 26 October 2013 2011 RSC-CSIR Innovation, 301109

CSIR-Tech TWO INITIATIVES THAT NEEDS NEW MODELS FOR EXECUTION 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.

ENABLING SYSTEMS FOR ENCOURAGING SCIENTIFIC ENTRPRENEURSHIP DSIR notification Implemented by CSIR: Approved by 174 th GB of the CSIR on 11 Aug 2009 Scientists can promote companies Institutes/lab/scientists can hold part or full equity in private companies in lieu of technology transfer fees © 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-Tech SHAREHOLDING PATTERN Section 25 company, created under scheme of CSIR, Technology Business Incubator at CSIR-NCL Campus, Pune. 80 % CSIR Staff and Scientist welfare Trust A philanthrophic Trust incorporated under the Indian Trusts Act, 1882 State Bank of India 10%

CSIR-Tech

CSIR-Tech Pvt Ltd (www. csirtech. com) Catalyzing Lab to Market Journeys 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 Taking the sweat out of partnership between Industry and Academia © CSIR-Tech Pvt Ltd 7

CSIR-Tech CTPL – 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.

CSIR-TECH : BOARD OF DIRECTORS Chairman Dr Vijay Kelkar Padma Vibhushan Awardee Well known Economist Mohandas Pai Chairman, MGE Ex-Infosys board © CSIR-Tech Pvt Ltd Luis Miranda Ex-Chairman, IDFC PE Ex-CEO, IDFC PE Dr Saurabh Srivastava Chairman, CA Ex-NASSCOM Prakash Rao GM, Private Equity, State Bank of India CEO Amitabh Shrivastava CEO, CSIR-Tech Serial Entrepreneur Dr S. Sivaram CSIR Bhatnagar Fellow Ex-Director, NCL Dr Sourav Pal Director, CSIR-NCL Chairman, Venture Center S. A. Thimmaiah CGM, Corp Strategy & New Business, SBI Dr V. Premnath Head, NCL Innovations Director, Venture Center 9

CSIR-Tech PROPOSED REVENUE MODEL – Realization of value of equity held by CTPL in a spinout 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-Tech CSIR 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-Tech CORE 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 derisking) 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 MODE OF ENGAGEMENT Non Exclusive Technology Marketing Agreement CSIR Laboratory CTPL Fees, royalty Knowhow/IPR Licensor 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 MODE OF ENGAGEMENT Technology Commercialization Collaboration Agreement Deferred fees CSIR Equity, fees, royalty CTPL Knowhow/IPR 1. Collaboration agmt (umbrella) 2. Licensing agmt (for each case) 1. Sub‐licensing agmt (can include equity terms) 2. Investment/share holder agmt Licensor, Start -up This model will help CSIR labs get the benefit of equity gains/ realization without directly holding equity in spin-offs.

CSIR-Tech TECHNOLOGY COMMERCIALIZATION COLLABORATION AGREEMENT CSIR Equity, fees, royalty Licensor, Start-up CTPL Knowhow/IPR 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 CTPL: THE SPINOFF PROCESS Scientist can use SES (Scientist Entrepreneurship Scheme) notification 1. Scientist pitches spinoff idea to CTPL 2. CTPL qualifies spinoff idea © CSIR-Tech Pvt Ltd 3. Scientist gets CSIR approval for equity 4. CTPL & Scientist (& Entreprene ur) 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 16

CSIR-Tech CTPL: THE SPINOFF PROCESS Scientist can use SES (Scientist Entrepreneurship Scheme) notification 1. Scientist pitches spinoff idea to CTPL 2. CTPL qualifies spinoff idea 3. Scientist gets CSIR approval for equity 4. CTPL & Scientist (& Entreprene ur) execute SHA Entrepre neur(s) 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 CSIR‐ Tech Shareholding Scientist‐ Promoter © CSIR-Tech Pvt Ltd 17

CSIR-Tech CTPL: THE SPINOFF PROCESS Lab can use KFE (Knowledge For Equity) notification Scientist can use SES (Scientist Entrepreneurship Scheme) notification 1. Scientist pitches spinoff idea to CTPL 2. CTPL qualifies spinoff idea 3. Scientist gets CSIR approval for equity 4. CTPL & Scientist (& Entreprene ur) execute SHA Entrepre neur(s) 5. Scientist & Lab get DG‐CSIR approval for equity CSIR‐ Tech 6. CTPL & Scientist finalize business plan CSIR‐Lab 7. CTPL helps spinoff negotiate Tech Transfer with Lab 8. CTPL helps find investor(s) 9. CTPL spurs spinoff growth CSIR‐Tech Shareholding Scientist‐ Promoter © CSIR-Tech Pvt Ltd Entrepre Scientist‐ neur(s) Promoter 18

CSIR-Tech CTPL: THE SPINOFF PROCESS Scientist can use SES (Scientist Entrepreneurship Scheme) notification 1. Scientist pitches spinoff idea to CTPL 2. CTPL qualifies spinoff idea Lab can use KFE (Knowledge For Equity) notification 3. Scientist gets CSIR approval for equity 4. CTPL & Scientist (& Entreprene ur) execute SHA Entrepre neur(s) 5. Scientist & Lab get DG‐CSIR approval for equity CSIR‐ Tech 6. CTPL & Scientist finalize business plan CSIR‐Lab 7. CTPL helps spinoff negotiate Tech Transfer with Lab CSIR‐Tech Shareholding Scientist‐ Promoter © CSIR-Tech Pvt Ltd Entrepre Scientist‐ neur(s) Promoter 9. CTPL spurs spinoff growth 8. CTPL helps find investor(s) Investor CSIR‐ Tech CSIR‐ Lab Scientist‐ Promoter Entrepre neur(s) 19

CSIR-Tech Investor SPIN OFF STAKEHOLDERS CSIR‐Tech Entrepreneur(s) & Team CSIR‐Lab 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 Scientist‐Promoter © CSIR-Tech Pvt Ltd 20

CURRENT PLAYERS IN ECOSYSTEM Talent Trends & Insights Ideas & Inventions Solution Specification IP Product / Service Scope Knowhow Services Infrastructure TTOs / Biz. Dev Dept. Incubators (₹ Provide Go. I funds to Startups ₹) Startups & Spinoffs © CSIR-Tech Pvt Ltd (₹ Generate Revenue for Labs for Tech Transfer & Licensing ₹) Indian Corporates Distribution Channels Customers Innovation Complexes SMEs Strategic Partners Market (Problems & Solutions) CSIR Labs (Science & Technology) CSIR-Tech MNCs 21

CSIR-Tech CTPL’S POSITIONING IN ECOSYSTEM Talent Trends & Insights IP (₹ Support TTO/BDD in Revenue Generation ₹) (₹ Create Capital Gains for Labs via Equity Stakes ₹) Knowhow Services Infrastructure TTOs / Biz. Dev Dept. Incubators (₹ Provide Go. I funds to Startups ₹) Startups & Spinoffs © CSIR-Tech Pvt Ltd Solution Specification CSIR-Tech (₹ Generate Revenue for Labs for Tech Transfer & Licensing ₹) Indian Corporates Strategic Partners Distribution Channels Customers Innovation Complexes SMEs Product / Service Scope Market (Problems & Solutions) CSIR Labs (Science & Technology) Ideas & Inventions MNCs 22

CSIR-Tech Thank You Amitabh Shrivastava CEO, and Executive Director CSIR‐Tech Private Limited 100, NCL Innovation Park Dr Homi Bhabha Road Pune – 411008 Phone: +91 99 00 33 1885, +91 20 6401 1026 Email: amitabh@csirtech. com Web: www. csirtech. com in. linkedin. com/in/amitabhshrivastava © CSIR-Tech Pvt Ltd 23