cit funding sources & sbir intro - november 19, 2014

CIT Funding Sources

An Overview of the GAP Funds and CRCF Programs

November 2014

1© 2014 Center for Innovative Technology

Agenda

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• CIT Introduction• Funding Landscape• CRCF• GAP Funds• Discussion

© 2014 Center for Innovative Technology

CIT Mission

• CIT drives innovation, technology and entrepreneurship in Virginia to foster research commercialization, create new high-growth, high-tech companies, promote innovative solutions, expand broadband and grow Virginia’s innovation economy.


Service Lines and 2015 Objectives

• Operate technology sourcing and management consulting practice

• Maintain a statewide research and technology plan

• Administer the Commonwealth Research Commercialization Fund

• Deliver technology solutions via R&D programs

• Accelerate federal funding for small business

• Operate CIT’s GAP Funds

• Operate Office of Telework and Broadband Promotion

• Provide demand generation and infrastructure-development services


AGENDA

• 11:35-11:55: CRCF Introduction by Jennifer Hiltwine, CIT

• 11:55-12:15: CIT GAP Funds Intro and VC Tips by Sean Mallon, CIT

• 12:15-12:30: LUNCH

• 12:30-1:30: CIT’s SBIR/STTR Support Program and SBIR/STTR Intro by Robert Brooke, CIT

Angel Investors

6Source: Startups.co© 2014 Center for Innovative Technology

Angels Investors (cont.)

7Source: Startups.co© 2014 Center for Innovative Technology

Venture Capital

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Venture Capital

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• VCs invested $9.9 billion in 1,023 deals Q3 2014, a 27%decrease in $ and a 9% decline in deals compared to Q22014

• Investments in the first 3 quarters of 2014 totaled $33.2billion, already exceeding the total funding for all of 2013

• The top 10 deals accounted for 18% of dollars invested in Q3

• There were 11 Megadeals ($100m +) in Q3 alone versus atotal of 16 in all of 2013

• Life Sciences investing in Q3 fell 35% in dollars and 6% indeals with $1.6 billion going into 188 deals


Venture Capital (cont.)

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Trends•VC fundraising has not kept up with their rate of investing•Exits (IPO and M&A) continue to trend up in 2014


RESEARCH

PROOF OFCONCEPT

ORINVENTION

EARLYSTAGE

DEVELOPMENT

PRODUCTDEVELOPMENT PRODUCTION

Accelerating Commercialization

GAP Fund

Eminent Researcher Recruitment Fund

Research Matching Fund

Facilities Enhancement Loan Fund

Commercialization Fund

SBIR Matching Fund

Commonwealth Research &Technology Strategic Roadmap

STTR Matching Fund


CIT R&D


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CRCF FY2015 Solicitation

• $2.8 FY2015 appropriation

• Single solicitation• Limited submission

• Programs• Commercialization• Eminent Researcher Recruitment• Facilities Enhancement Loan• Matching Funds• SBIR Matching Funds• STTR Matching Funds

• All program materials online: guidelines, templates, FAQs, webinars, sample applications, link to submit LOIs


Key Dates

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KEY DATES ACTIVITY

October 29, 2014 Preview Issued

November 14, 2014 RFP issued

December 16, 2014Letter of Intent (LOI)

deadline

January 31, 2015 Application deadline

Early June 2015 Award announcements

June 16, 2015 Earliest project start date


Eligible Sectors

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• Technology sector eligibility is consistent across programs• Advanced Manufacturing (additive manufacturing, remote

monitoring & sensing, and robotics)• Communications (next generation broadband networks,

wireless telecommunications, and next generation 911 infrastructure)

• Cyber Security• Data Analytics• Energy• Life Sciences• Modeling & Simulation


Matching Funds Program

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Targets higher ed and research institutes in Virginia. Leverages federal / private commercialization funding; awards support proof-of-concept work or other stages of research and technology development.

• Eligibility criteria:• Public and private colleges and universities in Virginia• Other nonprofit research organizations in Virginia, including

federal labs

• May fulfill a matching requirement for: • Federal / private sector / nonprofit proposals in development and to be

submitted by March 31, 2015 • Awarded project for which matching funds are still required

• May support commercialization-related expansion of existing project • One-to-one match required • Letter addressing commercial potential required• Maximum 4 applications per institution, and up to 2 per P.I.• Awards up to $100K each

Eminent Researcher Recruitment Program

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Targets public higher ed institutes in Virginia with awards helping the university to acquire or enhance their research superiority. Leverages private sector support.

• Eligibility criteria:• Public colleges and universities in Virginia

• Recruitment stages:• Candidates down-selected; hiring decision not yet made• Early-stage: candidates’ qualifications and program objectives established

• Must involve a private sector partner with business operations in the Commonwealth

• One-to-one match required, with at least 50% from private sector partner • Must demonstrate that researcher being recruited would:

• Create research superiority at the institution• Present an opportunity for valid research and significant commercialization in

the Commonwealth

• Maximum 1 application per institution• Awards up to $250K each

Facilities EnhancementLoan Program

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Targets higher ed institutions and political subdivisions in Virginia, with awards helping finance facilities used to commercialize eligible technology sectors.

• Eligibility criteria:• Public and private colleges and universities in Virginia• Virginia political subdivisions

• Loans may be used to build, purchase, lease, outfit, retrofit, etc. facilities used to commercialize research or technologies

• Line of credit, with approved repayment schedule• Application must include a repayment plan• Maximum 1 application per institution• Awards up to $350K each

Commercialization Program

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Targets young, early-stage technology companies in Virginia, with awards supporting proof-of-concept work that have a reasonable probability of enhancing the Commonwealth’s national and global competitiveness.

• Eligibility criteria:• Applicants incorporated on or after November 17, 2012• Virginia must be the principal place of business for the firm and its CEO • Applicants must conduct the CRCF project in Virginia• Applicants may have received up to, but not exceeding, $250K in outside private

investment (not including funds from family, friends, and/or founders)

• Other conditions:• Proof-of-concept work• One-to-one match required• Demonstrable economic development potential• Reasonable probability of enhancing Virginia’s national and global competitiveness

• Organizations may submit up to 2 applications in any combination under the Commercialization and SBIR / STTR Matching Funds Programs

• Awards up to $50K per application

SBIR / STTR Matching Funds Programs

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Targets Virginia-based technology businesses that have received recent SBIR or STTR awards in Virginia, with CRCF awards supporting commercialization of high-potential research or technologies related to the SBIR or STTR work in eligible technology sectors.

• Eligibility criteria:• Applicants must have received an SBIR or STTR Phase I or II award from a federal agency

or submitted a proposal in CY2014 and are awaiting award decision • Phase I applicants must have incorporated on or after November 17, 2011• Phase II applicants must have incorporated on or after November 17, 2009

• At least 51% of the applicant’s employees must reside in VA• At least 51% of the applicant’s property must be located in VA

• Other conditions:• Application must focus on CRCF project, rather than SBIR or STTR work• Each application must be for a distinct SBIR or STTR award• SBIR or STTR awards already tied to a CRCF-supported project are not eligible

• Organizations may submit up to 2 applications in any combination under the Commercialization and SBIR / STTR Matching Funds Programs

• Awards up to $50K per application

Review Process

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• Multi-step review

• CIT – Compliance review

• Subject Matter Experts (SMEs) – Review and rank submissions

• Research & Technology Investment AdvisoryCommittee (RTIAC) – reviews and makes award recommendations to CIT Board

• CIT Board – makes final award decisions

Tips for A Successful Proposal

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• Consult Guidelines for specific criteria, including• Objectives• Plan of work, timeline• Impact• Market and potential for commercialization• Project team• Focus on CRCF project, not background information• Budget and budget narrative

• Use current, program-specific templates

Additional CRCF Details

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• Indirect costs are permitted• Caps on indirect costs are program-specific and discussed

in Guidelines• Applications requesting direct costs only are reviewed

more favorably

• IP agreements• Executed IP agreement for dual or multi-party projects

must be in place before funding is disbursed• IP agreements must be durable• For IP purposes, CRCF awards are not considered state

funds

• Stem cell proviso

Additional CRCF Details

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• CRCF is an online process

• Letters of Intent (LOIs)• Required• Assist CIT in gauging proposal activity and identifying

reviewers

• Applications• Questionnaire• Component documents to upload

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• CRCF is an online process

• Letters of Intent (LOIs)• Required• Assist CIT in gauging proposal activity and identifying

reviewers

• Applications• Questionnaire• Component documents to upload

Application Process

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• Proposal Template• Program-specific• Word format• Contains 2-3 sections (program-dependent)• Upload in PDF format

• Budget / Budget Narrative Template • Program-specific• Excel format• Two tabs: Budget and Budget Narrative• Upload in Excel format

Application

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Application• Appendix (no template)

• Includes CVs, letter from Authorized Representative, letters of support, proprietary information, etc.

• Upload in PDF format as a single document

For Facilities Enhancement Loan Program applicants only• Financial Information (no template)

• Provide the most recent audited and internal statements including: Statement of Net Assets; Statement of Revenues, Expenses, and Changes in Net Assets; and Statement of Cash Flows

• Upload in PDF format as a single document

For SBIR or STTR Matching Funds Program applicants only• Evidence of SBIR or STTR Phase I or II Award (no template)

• Provide the Official Notice of SBIR or STTR Phase I or II Award or identify the Phase I or II proposal submitted in CY2014

• Upload in PDF format

CIT GAP Funds Investment Criteria

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Management Team / Founder Full-Time Commitment Integrity, Passion, Creativity Coach-ability Record of High Achievement

Investment Stage Seed-Stage Focus Up to 36 Months Prior to Series-A Pre-prototype – Newly-Launched

Technologies

Investment Range GAP Investment

< $200K; >$100K Tranched < $1M Concurrent Syndication < $1M Previous Financing Follow-On Investment up to $250K

Innovation Investment < $75K per Company > $50K Requires IAB Review

Proprietary Advantage Unique Technology Defensible IP Position Difficult-to-Replicate

Scalability Markets with Big Buying Power Potential for Dominant Market

Position >$20M Top-Line within 5 years

Returns > 5X Cash-on-Cash Return

Industries Technology BioLife Energy

Geographic Focus Virginia-Only


CIT GAP FundsHistogram


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Sean Mallon: [email protected], 703-689-3045

CRCF: [email protected]

Questions?


mailto:[email protected]

mailto:[email protected]

cit funding sources & sbir intro - november 19, 2014

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