Mr Suresh Natarajan, General Manager of Applied Global Services;
Dr Lim Khiang Wee, Executive Director of IMRE;
Dr Mark Auch and Mr Senthil Ramadas, CEO and CTO of Tera Barrier Films Pte Ltd;
Distinguished guests;
Ladies and gentlemen
Welcome
1. We are gathered here this morning to celebrate the joyous occasion of the official opening of Tera Barrier Films Pte Ltd. Congratulations to the Founders of Tera Barrier on your first steps to success; and to IMRE, on your scientific achievements and the setting up of a “Lab-in-a-RI”.
2. I am delighted too that Applied Materials has placed their bet of confidence in the new start-up through an early injection of fund.
Stars Maker: Technology and Business Incubation
3. Tera Barrier has done well; but it is not an isolated success story. Exploit Technologies has been working closely with A*STAR research institutes to seed a pipeline of high potential technologies to bridge A*STAR’s strong research capability with the market’s persistent call for novel technologies. To value-add effectively to A*STAR technologies, we have identified and invested in early stage technologies to prepare them for market adoption.
4. This is done through technology and business incubation.
5. In technology incubation, the Commercialisation of Technology (COT) funding programme enables us to invest upfront and take development risks of up to S$1 million for each project. COT is an internal gap funding mechanism for A*STAR’s research institutes to carry out technology development and refinement based on their inventions and proof-of-concept prototypes over a period of 3 to 12 months. Through the COT programme, we are creating a pool of market-ready technologies for commercial applications, refinements for mass production and enhancements.
6. In business incubation, Exploit Technologies collaborates with A*STAR’s research institutes, where we identify new technology areas early in the research value chain to develop application driven, multi-disciplinary Flagship Projects and drive these with commercialisation outcomes firmly in mind. For such projects, we are prepared to invest upfront for up to S$3 million per project. We expect some of the Flagship projects to have the potential to grow new industry verticals.
7. Exploit Technologies' commercialisation efforts have reaped fruits. We are now managing a portfolio of close to 3,000 active patents, granted more than 250 licences for A*STAR's technologies, and created a portfolio of more than two dozen spin-off companies. Estimated business revenue to be generated by licensees from sales of products and provision of services using or incorporating A*STAR's technologies is projected to be over S$500 million.
8.We hope that with more industry partners coming forward to co-develop A*STAR technologies, we can scope up impactful projects that have the potential to create new industry verticals, nurture promising entrepreneurs, and facilitate job creation in Singapore.
9. Moving forth, we are looking to initiate 12 new Flagship projects (8 S&E and 4 BMS) and 27 new COT projects (15 S&E and 12 BMS) every year. We are building up a strong pipeline of Flagship and COT projects [list of S&E’s and BMS’ COT and Flagship projects to be projected on the screen]
The successful new kids on the block
10. In the start-ups’ space, Exploit Technologies has been working alongside our start-ups to create viable business plans.
11. Since 2002, Exploit Technologies has seen the birth of 27 start-ups. Many of these start-ups have grown beyond their early days to earn themselves a well-deserved place across multiple industry verticals and beyond Singapore borders.
12. Some of our forerunners have already expanded their footing overseas; won million-dollar contracts; partnered big names in the industry; secured a seat as part of a single winning consortium commissioned by the Singapore government; and the list goes on.
13. Over the years, we have also put in place several initiatives to help our new entrepreneurs.
14. Just last week, we launched the Mentorship Programme that brings together a group of professionals who have volunteered their time to contribute to showing the way to aspiring Singapore start-ups. Many of them are experienced business people from either small or large business environments. They either have senior management experience in a corporate environment or have successfully operated their own business. These mentors are trusted sources or guides who will help our start-ups learn about expertise they don’t already have, and help them grow their businesses.
15. The Angel Investment Management (AIM) programme is yet another example of how we have been rendering support to our start-ups. AIM has been a catalyst and facilitator to encourage angel networks to be formed in special interest groups, which in turn promotes angel investment in start-ups. This move has benefited aspiring entrepreneurs and injected new vibrancy into the Singapore economy. To date, AIM has helped sparked angel networks within NTU Alumni, HP Alumni and Singapore Manufacturers’ Federation.
16. Besides angel investors, we are also keeping our eyes on the venture capitalists. That was how D-SIMLAB Technologies found Imprimatur and Curiox Biosystems hit off with Nanostart AG. We hold annual VC Forum that provides a platform for keen corporate and private investors to get an overview of the robust pipeline of A*STAR’s technologies, business plans and start-ups that have been carefully selected with strict commercial success in mind.
17. Many of our portfolio companies are no strangers to injection of fund by venture capitalists and angel investors; while others received attractive buyout offers. For example, MicroPoint Technologies, a spin-off from IMRE, scored a breakthrough in microneedle technologies and attracted an investment round from Sumitomo Corporation Asia; homegrown nanotech firm Singular ID was acquired by Bilcare for S$19.58 million, making the transaction one of the biggest buyouts of an A*STAR spin-off by a corporate entity; Volume Interactions was acquired by Bracco Diagnostic Asia Pte Ltd for more than S$15 million; and just last week, we divested part of its shares in Buzzcity to MIH, the investment arm of Naspers, for US$1 million.
18. In FY08, when the capital market was almost completely dried up, we managed to work with our start-ups to raise S$19.9 million. This is a few folds more the S$6.11 million raised in FY07, and S$4.45 million in FY06.
19. Additionally, our portfolio companies have collectively generated about S$35 million in revenue and employed some 480 people on their payroll. The total market value of these A*STAR start-ups, both realised and unrealised, amounts to close to S$75 million.
20. We hope that with Exploit Technologies’ commitment to grow good start-ups, more investors with the acumen to spot young promising companies will both place their trust in and lay their money on our start-ups. We are looking at spinning off eight to 12 start-ups a year; and to grow some of these start-ups to S$1 billion entities.
New entrant to the start-ups league
21. Today, it gives me great pleasure to welcome Tera Barrier Films into the ranks of its 26 predecessors that have embarked on the technopreneurship journey. To ease the transition from lab to market, Exploit Technologies participated actively in Tera Barrier Films’ early days to help shape its business plan, raise fund, open doors, get business leads, before eventually packing it off to be incorporated as the Tera Barrier Films of today. This is a full term baby.
22. We are encouraged that Tera Barrier Films, despite its relative youth in the substrate business, has managed to convince Applied Materials, the global leader in nanomanufacturing solutions, of its technology and business plan. The investment deal, which will be inked later this morning, bears true testimony to IMRE’s technology and Tera Barrier Films’ long term development and marketing plans. This is a refreshing development in the current economic climate, where corporate investments have slowed down significantly and overall outlook remained uncertain.
23. Moving forward, the company will set up its manufacturing base in Singapore. We will be working closely with Applied Materials to grow the company; from a full term baby, to a budding adolescent, and finally, to a full fledge profit-generating market leader.
Conclusion
24. Our technopreneurs have over the years taken the leap of confidence to push on with determination and courage. I am glad that Exploit Technologies has always been part of their unique adventure; may it be through providing mentorship services, coaching for elevated pitches, shaping of business plans or helping with fundraising efforts.
25. With A*STAR’s world class R&D endeavours and Exploit Technologies’ business expertise, I hope all present today will come forth to explore partnering us in commercialisation projects. As a Chinese saying goes, 花独放不是春, 百花齐放春满园. A single flower does not make a spring. By working together to commercialise A*STAR’s cutting edge technologies and to exploit new markets; we have a springboard to success in the making!
26. Thank you.
