1. Bi-National Funds
Strategic Partnerships & Funding
Presented by
Vibeke Dank
April Business Consulting
Executive Forum 2010
2010 ‫יום חמישי 51 אפריל‬

2. Agenda
What are binational funds ?
Principles & characteristics
Process & agreements
List of funds & examples
More international funding options
Summary
2010 ‫יום חמישי 51 אפריל‬

3. Funding sources
Binational fund, each OCS allocates
budget to the fund
Bilateral agreement where each
government agrees to fund joint
programs
2010 ‫יום חמישי 51 אפריל‬

4. Principles
Fund gains no equity in either company
No intellectual property rights to fund
Funding is repaid via royalties from
commercial sales
Foreign partner also gets parallel funding
As with OCS, requires matching funding
from other source
2010 ‫יום חמישי 51 אפריל‬

5. Characteristics
Funding up to “commercial readiness” of project
preference to R&D
larger company
product definition and specification, sales, and
service
smaller company
product development and some manufacturing
2010 ‫יום חמישי 51 אפריל‬

6. Characteristics
No service payment to binational fund
Foreign partner may be shareholder in Israeli
company
most funds have positive cash flow
Wide variety of markets and fields
2010 ‫יום חמישי 51 אפריל‬

7. Process
Choose a “partner” country
Identify the relevant fund and its timelines
Identify a local partner
Agree with local partner on joint proposal
and project principles
Submit proposal to fund (jointly)
2010 ‫יום חמישי 51 אפריל‬

8. Agreements
After funding award, 2 related agreements
trilateral agreement between fund and
both partners
standard
bilateral agreement between 2 partners,
including commercial arrangements
flexible , no fund involvement
2010 ‫יום חמישי 51 אפריל‬

9. Country List
EUROPE • Spain • Taiwan
• Belgium • Sweden • Australia
• Britain • Czech Republic (Victoria)
• Denmark • Switzerland • Singapore
• Finland • Turkey • South Korea
• France • Coming Soon • AMERICAS
• Germany • Hungary • USA
• Holland • Romania • Also: Maryland
• Italy • APAC & Virginia
• Portugal • China • Canada
• Russia • Hong Kong • Also: Ontario
• Slovenia • India • Argentina
2010 ‫יום חמישי 51 אפריל‬

10. BIRD: US/ Israel
20 projects annually
cumulative sales exceeding 8B$
Project type $$ Schedule Fund Approval by:
Full scale ~400,000
2/ year Board of Governors
project USD
~200,000
Mini project ongoing Executive Director
USD
2010 ‫יום חמישי 51 אפריל‬

11. SIIRDF: Singapore
Project type $$ Duration
duration up to 3 years,
100,000 -750,000
Full scale project not more than 500K per
USD year
duration up to 1
Mini project ~100,000 USD
year
Feasibility Study 30,000USD
2010 ‫יום חמישי 51 אפריל‬

12. CIIRDF: Canada/ Israel
Project How long to
Project type $$
Schedule approve?
Full-scale ~800,000 up to 3
6-8 weeks
Project CAD years
Feasibility ~20,000
6 months ~ 2 weeks
Study CAD
2010 ‫יום חמישי 51 אפריל‬

13. Other funding options
Multi-lateral programs, such as FP7
(ISERD), Eureka, Galileo, SESAR,
Eurostars
Multi-national enterprise cooperation
together with the OCS
2010 ‫יום חמישי 51 אפריל‬

14. Multi-national Enterprises
2 parallel sources of funding: OCS & multi-
national enterprise
“No limit” on funding amount
OCS will match multi-national investment (up to
50% of approved budget, not exceeding multi-
national investment value)
Multi-national funding in cash or cash-value
(goods, services, licenses)
Purpose: Product development or adaptation
2010 ‫יום חמישי 51 אפריל‬

15. Enterprise List
Alcatel Lucent Merck
Arkema Microsoft
Braun Novozymes
Coca Cola Oracle
Deutcshe Telekom Renault
GE Sun Micro Systems
HP
IBM
Intel
2010 ‫יום חמישי 51 אפריל‬

16. Summary
Fast track funding for mini projects
Periodic funding for large projects
Strategic foreign partner who also gets
funded
No equity to fund
No IP rights to fund
Monetary obligation contingent upon actual
commercial sales
2010 ‫יום חמישי 51 אפריל‬

17. ‫‪Thank you‬‬
‫יום חמישי 51 אפריל 0102‬