Portugal International O - PowerPoint Presentation

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Portugal

International OutreachCurrent Funding Opportunity

Slide2

Portugal

International Business Hub 2014

National Park Peneda

Gerês

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Palácio

das

Cardosas, Porto

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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

 

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Porto

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WHY PORTUGAL ?

2014 www.doingbusiness.org

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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 ?

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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 incentives

Lower

Outsourcing

and

Labor costs

Human

Resource

Well-equipped R&D

InstitutionsHighly skilled, motivated, well educated

workforceFuture outsourcing opportunity for global growth

Underutilized

well-trained PhDs

Existing relationships with innovation executives, incubators and academia

WHY PORTUGAL ?

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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

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Music Hall by

Rem

Koolhaas, Porto

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Business Advantages

Interest free loans incentivesGrants and loan-grant conversions (matching)CAPEX incentivesBusiness tax incentives

Politically stableFriendly eager workforceStrong IT and telecommunications

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Following Slides Deal With Examples of Funding Incentives

Normal business funding opportunities:grants, tax free loans,

tax incentives, tax credits, loan grant conversions, etc.

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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

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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

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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

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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

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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

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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

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Portugal

Available Funding Mechanisms

1st Year 2nd Year 3rd year…… …… ……… n

th

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

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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.

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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

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SUBSIDIZED

Future Growth

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Romantic Porto

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Port Wine Douro Valley

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Port Wine Douro Valley

National Park

Peneda

Gerês

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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