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TEDCO Funding Programs

TEDCO Funding Programs

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TEDCO Funding Programs

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  1. TEDCO Funding Programs November 2013

  2. 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

  3. 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

  4. 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

  5. Conventional Funding Research Laboratory Corporate Activity Public Funding Tech Transfer F, F, F, & F Commercial Launch SBIR / STTR Angels Product Design Venture Capital Proof of Concept Basic Research

  6. TEDCO Programs (Plus) Research Laboratory Corporate Activity Tech Validation $50K MD Innovation Initiative $215K MD Bio Ctr-Translational $200K VLTFund $500K Patent Support $10K Tech Commercialization Fund $100K Commercial Launch MD Bio Ctr-Commercialization $200K TEDCO Capital Partners $500K Stem Cell Research Fund $110K - $750K Product Design MD Venture Fund $1M Proof of Concept MD Industrial Partnership $100K Basic Research Rural Business Innovation $7.5K Grants, Corp. R&D F, F, F & F SBIR, TBED & Seed Angels & Venture

  7. 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

  8. 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

  9. 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

  10. 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

  11. MII information Jennifer Hammaker Program Manager Maryland Innovation Initiative jhammaker@tedco.md (410) 715-4173 www.tedco.md

  12. 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

  13. 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

  14. 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/

  15. For further University Programs & MERL information Linda Saffer Program Manager University Programs lsaffer@tedco.md (410) 715-4175 www.tedco.md

  16. 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

  17. 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

  18. 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

  19. For further MSCRF information Dan Gincel VP University Partnerships & Executive Director MD Stem Cell Research Fund dgincel@tedco.md (410) 715-4172 www.mscrf.org

  20. 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)

  21. 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, …

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. Competitive Comparison

  32. 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

  33. 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)

  34. 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

  35. 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

  36. 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

  37. 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

  38. 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

  39. Milestones and Progress Payments

  40. 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)

  41. Review Process • In by the 1st • 60 days to Final Decision • Four stage review • Compliance Review • Preliminary Review • Final Review • Final Decision

  42. Compliance Review • RFA requirements • Eligibility requirements • Format requirements • Rejections may resubmit without Resubmission Summary

  43. 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

  44. 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

  45. Final Decision • TEDCO President/Executive Director • Final Review recommendations • Final decision • Companies notified of their result • Awardees start Closing process

  46. 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

  47. 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.

  48. 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

  49. TEDCO Agreement Terms • Convertible Note Purchase Agreement • Payback: 8% interest • May be converted to equity • Payback period indefinite until the obligation is fulfilled

  50. 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.