texas emerging technology fund – north texas regional center for innovation &...

Texas Emerging Technology Fund – North Texas Regional Center for Innovation & Commercialization17919 Waterview Pkwy, Suite 1.50 Dallas, TX 75252 www.ntxrcic.org Ph: 972-883-4920 Fax: 972-883-4919

Mentor ProgramOrientation

Regional Center for Innovation & Commercialization (RCIC)

http://www.ntxrcic.org/

Texas Emerging Technology Fund – North Texas Regional Center for Innovation & Commercialization17919 Waterview Pkwy, Suite 1.50, Dallas, TX 75252 Ph: 972-883-4920; Fax: 972-883-4919

www.ntxrcic.org

Agenda

• Emerging Technology Fund (ETF)

• N. Texas RCIC

• ETF process & timeline

• Evaluator role

• Mentor role

• Next steps


www.ntxrcic.org

ETF Objectives

• Job creation through company formation• Earn a return on State’s Investment!• To accelerate the growth of our economy and

create jobs, we must attack “The Gap”• What is “The Gap”?

The time between the formation of an idea (or product), and the formation of a viable business around that idea.


www.ntxrcic.org

“The Gap”


www.ntxrcic.org

ETF Regions and RCIC’s

Texas Life Science CIC (statewide)

El Paso / Trans-Pecos RCIC

West Texas Coalition forInnovation and Commercialization

North Texas RCIC

Central Texas RCIC

Gulf Coast RCIC

South Texas RCIC Rio Grande RCIC


www.ntxrcic.org

The North Texas Region

• Population = ~7.6 million (over 1/3 of the state)• 40% of Texas’ annual gross domestic product• 63 counties, incl. the DFW Metroplex• 64 Institutions of Higher Education and research:

– 1 medical schools, 2 health science centers, 11 public and 18 private universities

– Wide variety of research, e.g., bio-medical, semiconductor, nanotechnology, telecommunications, information systems.

• Major concentration of high-tech industries, e.g.:– Texas Instruments, etc. in semiconductors– Raytheon, Lockheed-Martin in electronics and defense– Telecommunications, information services, etc.


www.ntxrcic.org

ETF Fund I Awards

• Research Superiority State N. Texas– 8 projects $ 35.0 M (3) $16.0 M

• Commercialization– 27 projects $ 33.5 M (6) $ 5.8 M

• Research Matching– 7 projects $ 16.8 M (1) $ 1.0 M

Total $ 85.3 M (10)$22.8 M


www.ntxrcic.org

Research Superiority Grants

To attract new, world class applied research talent to public IHE’s

Awarded• Nanotech Research Initiative (NRI) $10.0 M

– UT-Austin (UTA, UTD)– + $20M from Industry and IHE’s– 3rd such Center in the US

• TxAIRE Project (UT-Tyler) $ 3.7M• Medical Fluorescence (UNTHSC-FW) $ 2.3M

Total $16.0M


www.ntxrcic.org

Research Matching Grants

Matches external applied R&D funding for development of emerging technologies with

substantial commercial potential.

Awarded:– Global Contours (Rockwall) $0.9M


www.ntxrcic.org

Commercialization Awards

Invests in new commercialization of emerging technologies by companies collaborating with

Higher Education Institutions.

Awarded:– Hanson Robotics, Inc $1.50M– OptiSense Networks, Inc $1.50M– Photodigm $ .75M– Resonant Sensors Incorporated $ .60M– PrincipleSoft $ .75M– SNRLabs $ .75M

Total $5.85M


www.ntxrcic.org

ETF- Fund II

• Legislators passed HB-1188 on 5/28– $193 million for 2007-2009 biennium

• Some important improvements:– Clarified “grant” vs. “award” language– Allows non-equity payback mechanisms – Clarified some legislative intent– Provides matching funding for RCIC’s– Re-invests ETF payback in the ETF fund!


www.ntxrcic.org

ETF II – Priorities & Focus Areas

• Maximum emphasis on Commercialization activity– Higher % of Fund for Commercialization– Major priority on increased deal flow

• Priority/Pressure on Texas public IHE’s increasing tech-based spinouts – Governor’s direction to Regents, Presidents, etc.– Rename Tech Transfer offices to Commercialization– Standard IP agreements for use by all public IHE’s– Financial incentives to IHE Comm’l Offices for success

• ETF matching funds for RCIC service expansion• De-emphasis of Research Matching Grants

– ONLY large, high-potential, consortia may apply


www.ntxrcic.org

Allocation of ETF II Funds

$193 million over the biennium (9/07 - 8/09)Plus

Private, Industry and Federal funds attracted or catalyzed by ETF.

10%

20%

70%

Commercialization$135M

ResearchMatching

$19M

ResearchSuperiority

$39M


www.ntxrcic.org

New Pre-Seed Program

• Early-stage company– With < $500K prior investment– With an attractive, basic business idea

• Initial award up to $250K – Total $1M ‘reserved’– Additional tranches accessible by milestone progress

• Must commit to extended RCIC ‘mentoring’• State’s investment is ‘convertible debt’• Company has 30 months to secure add’l investment


www.ntxrcic.org

Commercialization Deal Criteria• Early stage, technology based, private company• Must include collaboration with public or private institutions

of higher education in Texas• Must provide significant economic benefit to the state of

Texas• Priority given to proposals that involve

– Emerging scientific or technology fields to enhance the state’s national or global economic competitiveness

– A medical or scientific breakthrough or in area of clean energy– Matching funds

• A substantial portion of the business must reside in the state of Texas


www.ntxrcic.org

Evaluator Role

• Evaluation of ETF applications

• Similar to STARTech 10

• More structured than STARTech

• More data required from the applicant up front in the application

• Most NTX RCIC evaluators have day jobs

• They do not mentor like STARTech Mentors

InitialContact

(1)

Questionnaire / 2-pager

(2)

InitialOrientation

(3)

Pre Proposal Counseling

(4)

Application Deadline

(5)

Triage &COI(6)

Quick Pitches(7)

Pass/FailPhone Call

(8)

Score SheetsBy Evaluators

(9)

Regional Orals

Presentation(10)

RCIC BoDApproval

(11)

Final Documents Due to State

(12)

State Orals PPT in Austin

(13)

17 Member Committee Decision

(14)

Due Diligence Phase

(15)

Gov, Lt. Gov, & Spkr of

HouseSignature

(16)

Contract Negotiations

(17)

½ of Money Upfront

(18)

Milestones Reached

(19)

2nd Half of Money

(20)

1 to 2 Weeks 1 to 2 Weeks 1 to 2 Weeks

1 to 2 Weeks

1 Day1 Day10 to 12 Days

10 Days

10 Days 1 Week 2 Weeks

2 Weeks

1 Week2 to 4 Weeks4 to 6 Weeks

2 to 4 Weeks

1 Week

4 to 6 Months

The Process & Timeline


www.ntxrcic.org

Mentor Role

• We are adding a Mentoring Program

• Very similar to STARTech’s Mentor Program– Volunteer position– Evaluate/judge deals– Decide which deals move forward in the process– Help groom their presentations for the next pitch– Provide mentoring after they receive ETF money

Mentor Program

• Will create a certification training program

• Certified mentors will receive– Public recognition– Business cards– Name badges– Email address– Right to reserve conference rooms for meetings


www.ntxrcic.org


www.ntxrcic.org

Key Dates forRound 2.2

• 21-Aug-07 Release Request for Proposals• 31-Oct-07 Evaluators identified, Conflict of Interest Forms completed• 06-Nov-07 Early application submission encouraged• 13-Nov-07 Applications and fees due to NTXRCIC (5:00 p.m.)

• 15-Nov-07 Email to Evaluators for conflict of interest with Applicants» Email to Applicants – proposal received, conflict with

Evaluators» Application feedback begins

• 27-Nov-07 Quick Pitches with all applicants• 03-Dec-07 Pass/Fail Phone Call (2:00) – begin debrief of ‘F’

Candidates‘F’ Feedback Forms Due from Evaluators Shortly.

• 18-Dec-07 Scored Applications Due from Evaluators (L/S deals forwarded)

• 03-Jan-08 Regional Orals Dry Run• 08-Jan-08 1:1 orals with North Texas RCIC and Top Candidates • 15-Jan-08 NTXRCIC reviews ranked proposals with NTXRCIC Regional Board• 24-Jan-08 State Orals Dry Run• 01-Feb-08 NTXRCIC submits recommended proposals to State ETF committee • 07-Feb-08 Applicant Presentation Day-Austin• 21-Feb-08 State ETF Committee meets to review proposals• 22-Feb-08 State ETF Committee recommends to Governor, et al.

Need More Deals

• We need to see more quality deal flow

• The ETF Fund II terms are very VC friendly– Pre-seed: convertible debt (very similar to STARTech)

– Regular investments• Now equity, just like VC’s• Valuation set by other 3rd party investment• State get 20% lift if first money in, other wise 20% less• State will vote along with major stock holder

– More detail on www.emergingtechfund.comTexas Emerging Technology Fund – North Texas Regional Center for Innovation & Commercialization

17919 Waterview Pkwy, Suite 1.50, Dallas, TX 75252 Ph: 972-883-4920; Fax: 972-883-4919 www.ntxrcic.org


www.ntxrcic.org

Next Steps

• Must sign Conflict Of Interest policy

• Mentor Application?

• Get password and access to applications

• First meeting: Quick pitches on Nov 27th

Texas Emerging Technology Fund – North Texas Regional Center for Innovation & Commercialization17919 Waterview Pkwy, Suite 1.50 Dallas, TX 75252 www.ntxrcic.org Ph: 972-883-4920 Fax: 972-883-4919

For additional and current information, forms, frequently-

asked-questions, etc. see:

www.ntxrcic.orgor

www.emergingtechfund.com

http://www.ntxrcic.org/

texas emerging technology fund – north texas regional center for innovation &...

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