TEDCO Funding Programs November 2013. Mission To facilitate the creation and growth of businesses...
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Transcript of TEDCO Funding Programs November 2013. Mission To facilitate the creation and growth of businesses...
TEDCO Funding
Programs
November 2013
Mission
To facilitate the creation and growth of businesses throughout all regions of the State by supporting entrepreneurship and
innovative technologies
– Establish and manage programs that support innovation
– Establish and manage programs that promote entrepreneurship
– Funding for technology transfer and development
– Funding for business formation, growth and expansion
Vision
Maryland will be internationally recognized as a premier location for innovation,
entrepreneurship and company formation
– Multiple innovation clusters
– Large, established entrepreneurial community
– Thriving venture capital community
Tech Commercialization Projects
Collaborative projects to leverage the effort and resources
–Focused on advancing products/services toward commercialization
–Defray a portion of the development costs
–Allow company and its technology to mature and attract follow-on funding
Conventional Funding
Proof of Concept
Product Design
Basic Research
Research Laboratory Corporate Activity
Commercial Launch
Public Funding
Venture Capital
F, F, F, & F
Tech Transfer
Angels
SBIR / STTR
TEDCO Programs (Plus)
Proof of Concept
Product Design
Basic Research
Research Laboratory Corporate Activity
Commercial Launch
F, F, F & F SBIR, TBED & Seed Grants, Corp. R&D Angels & Venture
Patent Support $10K
Stem Cell Research Fund $110K - $750K
MD Industrial Partnership $100K Rural Business Innovation $7.5K
MD Venture Fund $1M
MD Innovation Initiative $215KTech Validation $50K
Tech Commercialization Fund $100K
TEDCO Capital Partners $500K
MD Bio Ctr-Commercialization $200K
MD Bio Ctr-Translational $200K VLT Fund $500K
Maryland Innovation Initiative (MII)
–$5.8M in funding (annually)
–Foster the transition of promising technologies having significant commercial potential from Qualifying Universities
–“Site Miners” walk the halls for opportunities
MII Funding Programs
–Phase I - Pre-Commercial Research $100K• Faculty
–Phase II - Commercialization Planning $15K• Faculty or Entrepreneur
–Phase III - Early-Stage Development $100K • Start-up Company proposal within 12 months of Patent
License application
Additional funding for multiple university collaborations
MII Application & Review Process
–Apply on line at www.tedco.md
–Submissions by 1st of month NLT 5PM• Holiday or weekend next business day NLT 5PM • Submissions every other month (e.g. Jan 2, Mar 3, June 2)
–Compliance review
– Internal Review team due diligence
–Site Miner is the proposal champion• Must see proposals > 2 weeks before submission • Required to sign off on all applications
–Best proposals advance to Review Committee
MII Decision Process
–Review Committee scores and ranks
–Recommendations to the MII Board
–Decisions of the MII Board are final
–Awards notification
–Non-proprietary summary use for public disclosure –Feedback to PIs
MII information
Jennifer Hammaker
Program Manager
Maryland Innovation Initiative
(410) 715-4173
www.tedco.md
Tech Validation Program (TVP)
–Goal - Increase non-MII campus start-ups
–Team - Inventor, tech transfer, and entrepreneur
–Funding -Up to $50K • $40K Pre-commercial technology research • $10K for commercialization analysis (also federal labs)• Order of activity to be project specific
Patent Assistance Program
–Start-up company support for ongoing IP expenses paid to MD university/college
–Within 18 months of License
agreement
–Up to $10K Grant on a one to one match
Maryland Entrepreneur Resource List
–Resource for:• Companies to find experienced Entrepreneurs and Mentors • Entrepreneurs to find their next business opportunity• Entrepreneurs to collaborate and help each other
–Registration Open for: • Experienced Entrepreneurs• Mentors
–Available for Viewing http://tedco.md/program/maryland-entrepreneurs-resource-list-merl/
For further University Programs & MERL information
Linda Saffer
Program Manager
University Programs
(410) 715-4175
www.tedco.md
Maryland Stem Cell Research Fund
–Maryland Stem Cell Research Act of 2006
–Promote human stem cell research and medical treatments through grants to state public and private entities
–Three types of grants: basic, translational, or non-clinical research on human stem cells in Maryland • Investigator-Initiated Grant up to $200K/year up to three
years• Exploratory Grant up to $100K/year up to two years• Post-doctoral fellows funding up to $55K/year up to two years
A NEW Pre-Clinical or Clinical Stem Cell Research Grant
–RFA for Pre-Clinical and Clinical Stem Cell Research Grants to ‘for-profit’ Companies
–Conduct research in Maryland using human stem cells to further medical therapies
–Only for Company projects that have clearly defined and achievable milestones• Pre-Clinical Grants, up to $500K project/up to three years• Clinical Grants, up to $750K project/up to three years
Maryland Stem Cell Research Fund
–The 6th round of funding from the Maryland Stem Cell Research Fund, $10.4M in FY 2014
–To date over $100M and 289 research projects have been funded
–For up to date information: www.mscrf.org
For further MSCRF information
Dan Gincel
VP University Partnerships &
Executive Director
MD Stem Cell Research Fund
(410) 715-4172
www.mscrf.org
Technology Commercialization Fund (TCF)
–Facilitate the commercialization of technology by Maryland companies
–Significant collaboration/product development required
–Projects up to 12 months and up to $100K award • Requires a 50% company match (can be In-Kind)
Success Criteria
–Achieving technical/budget/schedule milestones
–Finding continuation funding (as of May 30, 2013) • 225 projects funded; $15.4M• 190 projects completed; $12.1M• $532M in continuation funding • 44 : 1 leverage • Follow-on funds were raised from Angel, VC, SBIR, State,
Debt Capital, Fed Contracts, Strategic Partners, …
Eligibility
–Recipient must be Maryland technology based for-profit company• Fewer than 16 employees (FTEs) AND
–Recipient must be early stage • No revenue (Revenue = commercial product sales/services)
OR• Venture investment no more than $500K total
–Meet the ‘significant collaboration’ requirement
Significant Collaboration
–Companies engaged in a Significant collaboration: • Federal Lab, or Academic Institution in Maryland• Non-profit research organization • Under a license agreement or a research agreement
–Companies receiving Significant coaching:• Incubator companies receiving business assistance (3mo.)• ACTiVATE and INNoVATE Graduates • Companies receiving RBI2 assistance
Application Process
–Proposal submitted on TEDCO website • Proposal guidelines• Submission deadline 1st of each month
–Review process requires two months
–On-Line RFA
–TEDCOFunds
http://www.tedcofunds.org/portal.asp
Proposal Sections
–Header Information and Abstract
–Business Opportunity
–Product or Service Description
–Market Analysis and Marketing
–Business Operations
–Project Plan and Milestones
–Project Team
–Budget and Budget Justification
25 numbered pages or less, 1” margins, 12 font
Header & Abstract
–Project Title
–Company Name
–Company’s official contact person • Name • Phone Number • Email Address
–Abstract • Non-Proprietary brief description of the company and the technology • It will be used by TEDCO publicity
All one page 1
Business Opportunity
–Business opportunity to be addressed
–Problem • Origins • How currently addressed • The demand
–Need
–Customers • Customer clearly described• Value to the customer
Beyond page 1, use “Company Proprietary” where needed
Product or Service
–Describe the product or service and its relationship to the problem• Clear to layperson / Enough detail for expert to assess
–Stage of the technology development• Benefit over other approaches • Proof of principle / preliminary data • Photos, diagrams, illustrations, … anything to help the words communicate
Product or Service
– Intellectual Property (IP)• Type of IP• Key aspects protected • Current and future products covered• Geographic coverage• Prior art and freedom to operate • Licensor, key license terms and dates
–Product development and commercialization • Pathway / milestones / associated funding sources • Regulatory or other required approvals
Market Analysis & Marketing
–General Market • Size /Trends • Initial and Secondary Markets / Why?• Customers / Value proposition
–Competition (table) / Barriers to Entry
–Revenue Model • Profitability / Price Points / Gross Margins
–Marketing and Sales • How promoted / Delivery to the customer / Partners• Current status
Competitive Comparison
Business Operations
–How the company will operate • Product development or services • How will manufacturing be done
–Management Team • Qualifications related to operational plan • Advisors and their commitment • Skill set gaps and how they will be addressed
Business Operations
–Financing required to go to market • Milestones for financing • Proposed sources • Exit strategy (if applicable)
–Financial statements• 5 year pro forma (Income Statement, Balance Sheet, and
Cash Flow Statement) and • If in business over 1 year (Historical summary for each full
year or last 3 years)
Project Plan and Milestones
–Describe the proposed project • Technical explanation of the project • Advancing toward commercialization• Increasing company valuation • Attracting follow-on funding
–Technical explanation of product / service
–Project details• Staffing and budget with justification• Enough detail to conduct a technical review
Project Plan and Milestones
–Specific aims and Quantifiable outcomes • Justification for the approach • Specific milestones and associated costs (3 groups)
(Used to validate progress and set payment schedule)
–Any contingency plans
–Maximum 12 months
–Regulatory guidelines / lab animals or human subjects / IACUC & IRB / HIPPA and HITECH
Project Team
–List of project personnel• Staff and collaborators • Brief summary of applicable background • Position with the company and role in the project
–Justification of the sufficiency of the team for the project
Budget & Budget Justification
–Detailed budget • Match to that which TEDCO Funds (50%)• Each line item (justification in narrative)
–Three columns • TEDCO Funding • Company match • Total
Budget & Budget Justification
–Details:• Minimum 50% company match (can be In-Kind)• Minimum 80% in project direct costs
–Subcontracts are direct costs –Labor ~ Hours / cost per hour / fringe benefits
(Max. $60/hr. for company employees) –Equipment and materials ~ Units / unit cost –Travel is excluded unless critical
• Maximum 20% for in-direct costs
Remember milestones and progress payments
Milestones and Progress Payments
Attachments
–Attachments are Not included in 25 page limit
–Only include • Reference and support letters • Detailed historical and pro forma financials • Resubmission summary
–Overview of reviewers’ concerns–Where addressed in the proposal –Three (3) page limit
–Revised full proposal (still 25 pages)
Review Process
–In by the 1st
–60 days to Final Decision
–Four stage review • Compliance Review• Preliminary Review • Final Review• Final Decision
Compliance Review
–RFA requirements • Eligibility requirements • Format requirements • Rejections may resubmit without Resubmission Summary
Preliminary Review
–Outside commercialization review (with NDA)
–Outside technical review (with NDA)• Both as needed to complement in-house expertise
–Site Visit
–Review team selects companies for Final Review • Not selected applicants receive feedback • Resubmissions require Resubmission Summary • External reviews and Site visit typically not repeated
Final Review
–Company Presentation • 10 minute presentation to Review Committee• 20 minutes of Q&A • Company representative asked to leave • Resubmissions require Resubmission Summary
–Review committee meetings • Typically 3rd Tuesday of month (9AM to Noon)
(Seven weeks after submission)• Keep this time open when applying
Final Decision
–TEDCO President/Executive Director • Final Review recommendations • Final decision • Companies notified of their result• Awardees start Closing process
Funding Recommendations
–Turned Down• List of issues are given to the applicant• May resubmit, addressing all the concerns• Resubmissions require Resubmission Summary
–Approved• A formal closing NLT 90 days
Closing Process
–TEDCO Counsel manages the Closing
–Company key documents such as • Certificates of Good Standing from tax office(s) • Articles of Incorporation, Bylaws, Corporate Resolution
authorizing execution of the convertible note, most recent Financial Statements, rent agreement with incubator
• Collaborative agreement finalized • Evidence of regulatory guidelines compliance • Etc.
TEDCO Agreement Terms
–Funding Tranches • 25% upfront • 25% at Milestones with project report and invoice• Final payment requires final project report and Closeout
Site Visit
–Corporate covenants• Section 11 of agreement• Covenants and revenue reporting expire with the end of
the repayment obligation
TEDCO Agreement Terms
–Convertible Note Purchase Agreement
–Payback: 8% interest
–May be converted to equity
–Payback period indefinite until the obligation is fulfilled
TEDCO Agreement Terms
–Milestone reports• Major Milestones during project (~ 33% of effort) • Final Project Report / Site Visit / Final Payment
–Quarterly Financial Statements • Calendar quarters beginning with closing• As long as TEDCO holds a note or securities
–Annual Economic Impact Reports• Five years or until TEDCO no longer holds a note or
securities
–A TEDCO Portfolio Manager will be assigned • General assistance / mentoring / networking / etc.
For further TCF information
Henry Ahn
Program Manager
Technology Funding Programs
(410) 715-4165
www.tedco.md
Rural Business Innovation Initiative (RBI²)
–Assist small technology oriented companies move to the next stage of growth
–No cost to the company
–Strengthening existing & emerging companies in rural Maryland
–Build a technology entrepreneurial community in the rural areas
RBI² Assistance
–Business assistance (examples)• business model or strategy • market strategy/analysis and competitive analysis• funding opportunities and introductions • financial analysis• business plan and grant review
–Technology assistance (examples)• intellectual property• prototype development• manufacturing problem solving• green assessments, etc.
RBI² Criteria
–Must be developing new technologies or utilizing technology
–Less than 16 employees
–Annual revenues < $1M/year
–Age of company not a factor
Regional Representatives
Western Maryland Rep.
Chuck Ernst
301.491.7034
Southern Maryland Rep.
Angela Singleton
410.941.9111
Northeast Maryland Rep.
Debbie Grosh
443.986.2111
Lower Eastern Shore Rep.
Barry Frey
410.202.8867
Mid & Upper Eastern Shore Rep.
Mark D. Greene
410.829.1408
For further RBI2 information
Robbie Melton
Director
Entrepreneurial Innovation
(410) 715-4164
www.tedco.md
Investment Programs
–Technology Commercialization Fund
–TEDCO Capital Partners • Propel Baltimore Fund• Orange Knocks Cyber Fund2
• Veterans Opportunity Fund1
• Chesapeake Regional Innovation Fund1
1-Currently in formation stage
2-Currently raising capital
Propel Baltimore
–Partnership of TEDCO, the Abell Foundation, and the France-Merrick Foundation
–Capital commitments of $4.3M
–Up to $250K in angel investment
–Early stage technology company in Baltimore City
–Lead investments with at least 50% matching investment required
–Viable exit within 4 to 7 years
–Typically post TCF
For further Propel Baltimore information
Randy Domolky
Managing Director
TEDCO Capital Partners
(410)715-4180
www.tedco.md
Entrepreneurial Assistance
–Achieving the Commercialization of Technology in Ventures through Applied Training for Entrepreneurs (ACTiVATE)
– INNoVATE entrepreneurship and business development leadership training
–Maryland Entrepreneur Resource List (MERL)
–The Maryland Rural Business Innovation Initiative (RBI2)
–TEDCO Portfolio Workshops & Webinars
–Maryland Biotechnology Center
–Small Business and Technology Development Center (SBTDC) network
Benefits of TEDCO Funding
–Access to business and technical assistance
–Access to Venture Capital, Angels, and strategic partners
–Publicity through TEDCO press releases
–Recognition and reputation of state programs
–Workshops for TEDCO funded companies only• Meet one on one with experts• Network with other companies
3rd Entrepreneur Expo
Thank you, Ronald KaeseDirector, Federal Programs [email protected] (410) 715-4170
Veteran’s Day weekend November 11th Throughout the area: Parades / Celebrations / Museums / Sites
