Pre-Seed
Request for no more than an initial $250k investment from the State

Criteria

1. Must be a corporation
2. Information Required

    - Structure of basic business plan including some information on most elements (i.e.  
       financials, market segment , etc.)

    - IP strategy outlined and some evidence of initiation of that strategy

    - Use of funds indicating appropriate application to advance IP strategy, business
       model

    - Clear commercialization and business development milestones (12 month timeline)
       identified, including expected date to achieve and responsible party

    - Proof of Concept (POC) or technology validation by a credible independent, objective
      reviewer. (i.e. Federal program, academy, university, industry, publications, etc.)
 
    - May have no equity and no more than $500k in equity raised 

    - Must have commitment that RCIC will incubate or oversee incubation by others to
       include providing a plan on how they are going to incubate the project 

    - Use of funds spelled out at multiple investment levels.  Note: Applicant to provide 3
       scenarios for use of funds with projected milestones that will be accomplished with   
       each level of investment. 
      
            1. Low level ($100k)
            2. Mid level  ($175k)
            3. High level ($250k)


“Fast-tracking” pre-seed deals

Pre-seed deals are put on the “consent agenda” at the quarterly ETF Committee meeting if the following occurred at the ETF Applicant Presentation Day:

   1. Three or more reviewers from the ETF Committee
   2. At least two from outside the region
   3. Unanimous agreement to recommend project to leadership

Note: The consent agenda means that the company is listed on the quarterly Committee meeting agenda as ”pre-approved;” however, any Committee member can pull it off the pre-approved list for full discussion and voting by the whole Committee.  Therefore, “fast-tracked deals are still subject to potential review by the full Committee and are always subject to due diligence and final review by the leadership.


Pre-seed deal post-award

     - The “qualifying financing transaction” period is extended to 30 months 
        the amount of the “qualifying financing transaction” is equal to, at a minimum, 
        the amount of the award. 

     - The amount of the “qualifying financing transaction” is equal to, at a minimum, the
        amount of the award. 

     - Milestone funding:  After initial milestones are met, pursuant to the contract,    
        the pre-seed company may request additional funds to further the development
        of “next stage” commercialization milestones up to $250K. This “next stage” 
        milestone funding process can be repeated by the company up to a total project 
        funding of $1,000,000.
  
Note: A $1,000,000 reserve will be held for each pre-seed project awarded by the leadership. The reserves availability to the project will be determined by the achievement of the “next stage” milestones and compliance with contractal agreement.  After receiving a pre-seed award by the Leadership for a set amount, each subsequent payment will not require additional Leadership “consensus” approval but will be made in accordance with the contractual terms


A note of “fast-tracking”

     - Only pre-seed deals can be fast-tracked 

     - Therefore, any request over $250k cannot be fast-tracked 

     - A unanimous vote of three or more Committee members can still decline an
        applicant 

     - Declined applicants appear on the quarterly Committee meeting agenda as declined
        for documentation purposes, but they cannot be brought up for
        reconsideration by the Committee