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:
- Three or more reviewers from the ETF Committee
- At least two from outside the region
- 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
