Portugal International - PowerPoint Presentation

Portugal International OutreachCurrent Funding Opportunity

Portugal International Business Hub 2014 National Park Peneda Gerês

Palácio das Cardosas, Porto

INTRODUCTION Renee Caduceus Technology Partners, LLCBaylor College of Medicine - P.A. graduateMS – 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 preparationBuilt 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

Political Politically Stable Gov’t seeking direct investments into HealthcareSeeking global growthVery Favorable business environment Geography Friendly & SafePart 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 incentivesBusiness and Tax incentives - (CAPEX, R&D, internationalization, etc)Labor funding incentivesLower Outsourcing and Labor costs Human Resource Well-equipped R&D Institutions Highly skilled, motivated, well educated workforceFuture 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 StatisticsHealth Sector Researchers (FTE) (2011)6,354 Portuguese Science StatisticsHealth Sector PhDs (no.) (2010)2,797 Portuguese Science StatisticsHealth Sector R&D Investment (2011)$510.3 million Portuguese Science StatisticsTotal 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 incentivesGrants and loan-grant conversions (matching)CAPEX incentivesBusiness tax incentives Politically stableFriendly eager workforceStrong 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 AssumptionsAvailable Funding Mechanisms 1st Year 2nd Year 3rd year…… …… ……… n th 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

Portugal Available 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

Portugal Available 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

Portugal Available 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 - dolla r Grant (subsidy) One may submit several projects...Independent + conjointCovered Expenses: HR,  Reagents, components, specific equipment and software, patent costs, scientific and training activities costs,…. Potential Model R&D

Portugal Available 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 Economic Development Creates potential for jobs 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 FundingAvailable Funding MechanismsSUMMARY Example for a 3-year periodA 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 grantTotal   $ 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

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Port Wine Douro Valley

Port Wine Douro Valley National Park Peneda Gerês

Presented for consideration byRenee White, MS, PA Caduceus Technology Partners, LLCwww.CaduceusTechnology.comReneeW@CaduceusTechnology.com 281-391-9883 Please contact us to schedule a meeting for more information . NEW GRANT APPLICATIONS OPEN IN OCTOBER 2014