Technology Appraisal i ts use and appl icat ion in technology

t ransfer & commercial izat ion

Wanghee You

Manager

Technology appraisal department

Korea Technology Finance Corporation(KOTEC)

2014 .04

Contents

I. About KOTEC 1. Overview

2. Major Business

II. KOTEC’s Technology Appraisal

1. What is technology Appraisal?

2. How we do : process, system

Ⅲ. The use and application in technology transfer process 1. Technology Transfer process of KOTEC

2. How Technology Appraisal is utilized through technology transfer process : Information providing, Valuation, Financing, Technology development plan

Ⅳ. Future plan 1. Going global

WHO WE ARE

I. About KOTEC

► Founded in 1989 (President: Mr. Kim han-chul)

► Non-profit financial institution(No Shareholders)

► Contributions from Government & Financial Institutions

Partner for innovative SMEs, Global Leader in Technology Financing

► “Technology Guarantee” : a special type of credit guarantee

1

Central Technology Appraisal Institute

2

Technology Convergence

Centers

52

Technology Appraisal Centers

Headquarter (Busan,Korea)

55 Technology

Appraisal Centers

1,095 Total Employees

865

Certified Technology Appraisers

154

Ph.Ds

Key Areas of Operation

I. About KOTEC

Total Amount

of Deals(US$)

5.8 millions

# of technologies

transferred

254 technologies

# of Needs

Identified

1,299 needs

Technology

guarantee

Provided(US$)

18.4 billions

Intellectual

Property

Guarantee

272 millions

R&D

Guarantee

2.7 billions

Total

Technology

Appraisal

46,941 cases

Appraisal

Information

Provided

6,522 cases

Valuation

Conducted

606 cases

II. Technology Appraisal Overview

.

II. Technology Appraisal KTRS

.

• Forecast Technology Commercialization

Prospect and Corporation’s Insolvency

• Focus on Company’s Future Potential

ex) Technology Excellence, Business Feasibility

• Non-Financial Measures are dominant

KTRS

• Forecast Corporation’s Insolvency

• Focus on Company’s Past history

ex) Financial records

Business Feasibility

• Financial Measures are dominant

Credit Rating System

II. Technology Appraisal KTRS : Predictability of Default

.

0.00

1.6

2.89

3.55

4.15 4.74

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

AAA AA A BBB BB B

PD(2014)

PD(MIN)

PD(MAX)

Annual Default

Rate(2014)

II. Technology Appraisal Technology Valuation Model

.

Preliminary analysis (Technological competitiveness,

Marketability, Business feasibility)

Free Cash Flow Sum of Present Value

Discount rate(%) Forecast core variables : - Economic life of Technology

- Sales Estimates

- Estimation on expenses

such as tax, depreciation

Value

* we work in a team with CPA, IP attorney, and professor to provide more accurate and reliable valuation

Contribution rate(%)

106 82

42

166

0

100

200

2011 2012 2013 2014

# of Deals

78

55

33 Labs

Universities

CompaniesTotal Amount

of Deals(US$)

5.8 millions

# of technologies

transferred

254 technologies

# of Deals

By KOTEC

166 Deals Type of

Supplier

The number of deals dramatically increased in 2014 since we created the specialized Office

(Tech Bureau) and Centers(Technology Convergence Centers), and the platform for the technology transfer

III. Technology Transfer Overview

.

Tech-Bridge

.

III. Technology Transfer

Tech-Bridge : What is different?

.

III. Technology Transfer

Technology Transfer Process

.

III. Technology Transfer

Application of Technology Appraisal

.

III. Technology Transfer

“effectively advertise their technologies”

“easily find out whether the technology satisfies their needs”

Technology Transfer Process

.

III. Technology Transfer

Summary

.

III. Technology Transfer

Technology Appraisal plays a pivotal role

in Technology Transfer

IV. Future Plan