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

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)

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
CommercializationBIG,
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

THANK YOU!
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Funding Opportunities for Biotech Innovations

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