*Full Terms & Conditions

The winner of IC26 will receive £50k + VAT in non-dilutive R&D funding, paid 80% up front and 20% on completion of the agreed technical work and case study.

Funds will be available to the winner within 30 days of the award, subject to completion of an R&D Services and Warrant Agreement. You keep ownership of the IP you develop.

Separately, Kappika receives a warrant. A warrant is an option, not an obligation, for Kappika to invest £50k in shares in the future. No shares are issued now, and there is no dilution today.

Requirements: The winner must agree to the full T&Cs of the prize offering, as listed on this page, and they are required to provide a case study/report in the form of a paper or presentation. You can find examples here – https://www.perainternational.com/category/current-projects/

How the pricing works

The share price for the warrant is fixed based on the company’s valuation at the time the warrant is signed.

• If the company has already completed a funding round, the warrant uses that most recent round price.
• If not, a fair valuation is agreed at signing, and that sets the price for future shares under the warrant.

Pricing is agreed up front and is not linked to a future round.

How the warrant can turn into shares

There are two ways the warrant can convert into shares:

1. Normal exercise (most common and preferred)
Kappika chooses to exercise the warrant and invests £50k in cash. It then receives shares at the pre-agreed price. This brings new capital into the company.

2. Automatic conversion (if not exercised earlier)
If there is an exit event (such as a sale of the company) or just before the warrant’s long-stop expiry date (typically 10–15 years), the warrant automatically converts into shares even if Kappika has not invested the £50k.

However, in that situation the conversion happens on a reduced basis, meaning Kappika receives fewer shares than it would have received if it had invested the full £50k in cash. Economically, this acts as a back-stop participation right rather than a full investment.

What this means in practice

• The company gets £50k of R&D funding with no immediate dilution.
• Kappika is incentivised to invest £50k in a normal funding scenario if the company is progressing well.
• If the company succeeds without a formal round, Kappika still has some participation, but at a lower level because no cash was invested.
• There are no control rights, board seats, or special vetoes attached to the warrant.

Summary: The prize provides £50k of non-dilutive R&D funding, and Kappika receives a long-dated warrant with a fixed share price. Kappika can invest £50k for shares in the usual way, or if it never does, the warrant converts automatically at exit or expiry into a smaller number of shares.