Bidders' Conference Presentation


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  • Good morning and welcome. Introductions – John Griffin, Director, Technology Division Mike McKay, Manager, TBAO, Technology Division Lisa Delp, Technology Investment Coordinator, Technology Division
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  • Read bullet. OTF is focused on building on our strengths in technology and innovation to create high-wage jobs, new growth companies, and globally competitive products.
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  • So we’re currently in our seventh year of the program and it’s living up to its commitment and is delivering results. Here’s just a few of the highlights.
  • To accomplish the goals of the Third Frontier, we’ve developed a comprehensive set of 12 programs for FY 2010 that are each focused on addressing different aspects of technology research, development, commercialization, and access to capital. All of our funds are awarded as competitive grants. Each program is offered on an annual cycle. Proposals are evaluated by outside reviewers with whom we’ve contracted to make recommendations to the Third Frontier Commission. Program awards are made by the Third Frontier Commission, which is comprised of three state officials and six regional business representatives.
  • The first component of the Framework is the description of the five phases, which are represented by the circles – Imagining, Incubating, Demonstrating, Market Entry, and Growth & Sustainability. These are all pretty thoroughly explained in the RFP in section 2. The Success & Pre-Seed Funds Program is targeted at investments in companies situated between the late-imagining phase, the incubating phase, the demonstrating phase, and the early-market entry phase. The ovals between the phases represent what we call the Transition – or acquiring the resources to perform the activities on the next phase. (Stop here) The Imagining Phase is the linking, if only in concept, of a technology and a market opportunity. Activities focus on generating a “proof of principle”. The Incubating Phase activities include the definition of performance specifications, validation of technical capabilities in the context of the performance specifications, and further validation of the market and the commercial concept and the business plan. This is also where the major technical roadblocks and market roadblocks tend to show up. This phase is often referred to as the “Valley of Death” and more often than not, is the end of the road for commercialization initiatives. The Demonstrating Phase is where you attempt to generate technical and market proof within a more defined commercial context. Activities focus on product development and market acceptance. Working prototypes, performance to commercial specifications, and manufacturability within defined cost and quality standards, as well as generating evidence that customers will buy the product. The Market Entry Phase is where you enter the market to validate the commercial opportunity. Activities are those that are typically associated with an ongoing business – production, service, distribution, sales and marketing. Venture capitalists and corporations are the primary providers of the resources required to fund the Market Entry Phase activities. The Growth & Sustainability Phase is the execution of a comprehensive business plan to increase your market share and/or total revenue and profit in the context of a self-sustaining business.
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  • Eligible Entrepreneurial Success Fund Applicants are: Cincinnati USA Regional Chamber Dayton Development Coalition JumpStart, Inc. Ohio University Regional Growth Partnership Tech Columbus It has been determined by the Third Frontier Commission that the regional ESPs will be the gatekeepers for applications for this funding process. Eligible Pre-Seed Fund Applicants are (or the Management Teams from): BioEnterprise Blue Chip Ventures Case Western Reserve University Childrens’ Hospital Cleveland Clinic Foundation Draper Triangle Ventures Early Stage Partners Emerging Market Fund Entrepreneurs Fund, LLC JumpStart, Inc. JumpStart Evergreen Technology Lorain County Community College NCT Ventures North Coast Angels Ohio Innovation Fund Ohio Tech Angels Queen City Angels Regional Growth Partnership Reservoir Venture Partners TechColumbus & subsidiaries University of Cincinnati
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  • Read bullets. The following banking institutions have qualified as public depositories: Key Bank, Huntington Bank, National City Bank, Fifth Third, US Bank, PNC Bank and J. P. Morgan Chase.
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  • The next few slides are an attempt to capture some things that we’ve seen over the years that folks have included in their proposals that really didn’t help them, and in many cases actually hurt them. So I’ve titled it “Things To Avoid”. Read slide – In many cases, there are companies that we’ve already funded through TF that may augment your efforts. Make sure that you’re aware of the environment of activity that’s going on in Ohio and if it makes sense to include someone on your project that we’ve funded before that can add value to your effort, you should reach out to them. 2) On the other hand, it doesn’t make sense to involve previous OTF grantees if they don’t add value to your effort. 3) Read slide – Make sure that the people you’re asking to be involved in your project are really who and what you need. Sometimes folks like to dazzle our evaluators with extensive teams and individuals who are not actively involved in the project. That’s not helpful to you and our evaluators will see right through it. 4) Read slide – Make sure that your letters of support are meaningful.
  • And on Administrative issues – these are basically tips on what to do to avoid having your proposal thrown out by our staff before it even gets read by the evaluators.: Don’t be late submitting your proposal. Proposals are due at 2:00 PM on December 7. It’s your responsibility to make sure that it arrives in our office by that date and time. Don’t ignore the page limitations that are outlined in the RFP. The page limits are there for a reason, and we count the pages before we send the proposals to the evaluators. Anything over the page limit in a particular section gets removed by our staff. Don’t include more than 5 key personnel on your project. Anything over five will be removed. Don’t claim your entire proposal as propriety information and don’t mark every line of the proposal as containing trade secret information. That’s not acceptable. Don’t attach any appendices to the back of your proposal. That will also be removed by our staff before your proposal gets delivered to the evaluators. And finally, don’t ask for more money that what the RFP allows for each proposal. if you really want us to dismiss your proposal right off the bat These may seem like minor issues, but we review hundreds of proposals every year and I can tell you that we see these types of mistakes and lack of attention to detail over and over again. And frankly, if we see lack of attention to the minor details, it’s pretty likely that we’ll also see lack of attention to the more important details of a $1 million project. Have someone read your proposal before you submit it. Have two people read it. Have your spouse read it. We know that the person that prepares the budget forms may not be the same person that prepares the cover page or writes the Commercialization Strategy. Make sure that everything is consistent and ties together.
  • Bidders' Conference Presentation

    1. 1. Pre-Seed & Entrepreneurial Success Initiative FY 2010 Bidders Conference December 4, 2009
    2. 2. Agenda <ul><li>Welcome and Introductions </li></ul><ul><li>Ohio Third Frontier </li></ul><ul><li>Commercialization Framework </li></ul><ul><li>Pre-Seed & Entrepreneurial Success Initiative (OTFPSESI) </li></ul><ul><li>Q & A </li></ul><ul><li>Closing Remarks </li></ul>
    3. 3. Ohio Third Frontier <ul><li>Background </li></ul><ul><li>The Ohio Third Frontier was initiated in February 2002 and, with a commitment of $1.35 billion, is the state's largest-ever economic development initiative </li></ul><ul><li>Ohio’s investment has leveraged $4.1 billion in additional investments from the private sector and federal government </li></ul><ul><li>Program investments have helped to create 598 new companies, more than 8,500 new jobs, and more than 48,000 direct and indirect jobs </li></ul>
    4. 4. Ohio Third Frontier <ul><li>Vision </li></ul><ul><li>To establish, in targeted areas of technology, regional and statewide clusters of excellence that sustain our global competitive advantage in company and product formation, job creation and economic growth. </li></ul>
    5. 5. Ohio Third Frontier <ul><li>Objectives </li></ul><ul><li>Guided by a focus on Ohio research and industrial strengths: </li></ul><ul><ul><ul><li>Increase the quantity of high quality research that has commercial relevance to Ohio companies; </li></ul></ul></ul><ul><ul><ul><li>Expand access and availability of investment capital to create, grow and attract technology-based enterprises; </li></ul></ul></ul><ul><ul><ul><li>Grow and nurture entrepreneurial management talent supported by organized systems of services and networking; </li></ul></ul></ul><ul><ul><ul><li>Address the technical needs of existing companies pursuing new products and production processes; </li></ul></ul></ul><ul><ul><ul><li>Contribute to the expansion of a technologically proficient workforce. </li></ul></ul></ul>
    6. 6. <ul><li>Focus Areas </li></ul><ul><li>Based on a 2002 study by Battelle and revised by the Ohio Third Frontier Commission in 2008, the Ohio Third Frontier embraces five technology focus areas: </li></ul><ul><li>Biomedical </li></ul><ul><li>Advanced/Alternative Energy </li></ul><ul><li>Instruments, Controls, Electronics </li></ul><ul><li>Advanced Materials </li></ul><ul><li>Advanced Propulsion </li></ul>Ohio Third Frontier
    7. 7. Ohio Third Frontier - Investment Highlights <ul><li>Statewide Entrepreneurial Signature Program (ESP) established and organized around 6 regional networks </li></ul><ul><li>46 pre-seed and seed funds capitalized </li></ul><ul><li>13 Wright Centers of Innovation (including one Mega-Center) established </li></ul><ul><li>Endowments for 26 Ohio Research Scholars </li></ul><ul><li>More than 80 advanced energy projects supporting the growth of the fuel cell and photovoltaic clusters </li></ul><ul><li>3,000 STEM interns placed in over 700 companies </li></ul>
    8. 8. <ul><ul><li>Research Commercialization Programs </li></ul></ul><ul><ul><li>- Wright Projects Program RFP open </li></ul></ul><ul><ul><li>- R & D Center Attraction (New) RFP open </li></ul></ul><ul><ul><li>Entrepreneurial Programs </li></ul></ul><ul><ul><li> - Pre-Seed & Entrepreneurial Success Initiative RFP open </li></ul></ul><ul><ul><li>Cluster Development Programs </li></ul></ul><ul><ul><li>- Advanced Materials Program (New) RFP closed </li></ul></ul><ul><ul><li>- Sensors Program (New) RFP closed </li></ul></ul><ul><ul><li>- Advanced Energy Program RFP closed </li></ul></ul><ul><ul><li>- Fuel Cell Program RFP closed </li></ul></ul><ul><ul><li>- Photovoltaic Program (New) RFP closed </li></ul></ul><ul><ul><li>- Medical Imaging Program (New) RFP TBR </li></ul></ul><ul><ul><li>- Biomedical Program (New) RFP TBR </li></ul></ul><ul><ul><li>- Targeted Industry Attraction Grants </li></ul></ul><ul><ul><li>Human Capital Programs </li></ul></ul><ul><ul><li>- Third Frontier Internship Program </li></ul></ul><ul><ul><li> TBR = To Be Released </li></ul></ul>Ohio Third Frontier FY2010 Programs
    9. 9. Commercialization Framework OTFPSESI
    10. 10. Ohio Third Frontier Pre-Seed & Entrepreneurial Success Initiative Fiscal Year 2010
    11. 11. Program Purpose <ul><li>Provide continuing support to existing Ohio Third Frontier Pre-Seed Funds and related entrepreneurial support programs that have demonstrated success in using previously awarded Grant Funds to created measurable economic benefit for the state through support of Ohio technology-based companies in the Imagining, Incubating, and Demonstrating phases of commercialization. </li></ul>
    12. 12. Program Goal and Objectives <ul><li>To provide capital to eligible Pre-Seed Funds to enable them to build on their proven successes in applying investment capital to companies in the Imagining, Incubating or Demonstrating phases of commercialization by catalyzing their ability to raise new private monies so that either additional investments can be made to existing portfolio companies to extend their “runway” or investments can be made in new companies to expand the investment portfolio; and </li></ul><ul><li>To provide funding to eligible Entrepreneurial Signature Program Lead Applicants to build on proven success in delivering entrepreneurial assistance services to help companies in the Imagining, Incubating, or Demonstrating phases of commercialization. </li></ul>
    13. 13. Eligible Purposes <ul><li>The OTF will fund grant applications that focus on: </li></ul><ul><li>Investment and service opportunities that are focused on the following technology areas: Biomedical, Advanced/Alternative Energy, Instruments-Controls-Electronics, Advanced Materials, and Advanced Propulsion; </li></ul><ul><li>Investment opportunities that are designed to provide follow-on funding to existing portfolio companies that need additional financing or provide investments for new opportunities; and </li></ul><ul><li>Entrepreneurial services that have a proven record of success and that are discrete, value added activities that meet an identified unfulfilled need in the region. </li></ul>
    14. 14. Eligible Lead Applicants <ul><li>Eligible Lead Applicants are limited to Existing Pre-Seed Funds and management teams of Existing Pre-Seed Funds or existing Ohio Third Frontier Entrepreneurial Signature Programs. </li></ul><ul><li>This RFP recognizes three types of Lead Applicant: </li></ul><ul><ul><li>Pre-Seed Fund Lead Applicant </li></ul></ul><ul><ul><li>Entrepreneurial Success Fund Lead Applicant </li></ul></ul><ul><ul><li>Combined Purpose Lead Applicant </li></ul></ul><ul><li>Eligible Lead Applicant organizations are listed in section 2.3.2 of the RFP. </li></ul>
    15. 15. Funding <ul><li>Development anticipates awarding up to $11 million through the FY10 OTFPSESI to eligible Lead Applicants across the designated funding categories. </li></ul>
    16. 16. Funding <ul><li>Pre-Seed Fund </li></ul><ul><li>The Lead Applicant’s plan must be based on a grant in the range of $500,000 - $2 million; </li></ul><ul><li>The Lead Applicant may use up to 10% of Grant Funds awarded for Due Diligence; </li></ul><ul><li>The Lead Applicant may use up to 10% of Grant Funds awarded for Enhanced Management Services; </li></ul>
    17. 17. Funding <ul><li>Entrepreneurial Success Fund </li></ul><ul><li>The Lead Applicant’s plan must be based on a grant in the range of $500,000 - $2 million; and, </li></ul><ul><li>The Lead Applicant may draw on the grant to reimburse itself or collaborators for budgeted expenses. </li></ul>
    18. 18. Funding <ul><li>Combined Proposal </li></ul><ul><li>The Lead Applicant’s plan must be based on a grant in the range of $1 million - $4 million; </li></ul><ul><li>For the Pre-Seed portion of the Grant, the Lead Applicant may use up to 10% of Grant Funds awarded for Due Diligence; and </li></ul><ul><li>For the Pre-Seed portion of the Grant, the Lead Applicant may use up to 10% of Grant Funds awarded for Enhanced Management Services. </li></ul><ul><li>The Lead Applicant may draw on the Grant Funds to make investments in Ohio-based technology companies or to reimburse itself for approved Due Diligence or Enhanced Management Services expenses or entrepreneurial assistance services. </li></ul>
    19. 19. Cost Share <ul><li>Pre-Seed Fund </li></ul><ul><li>The Lead Applicant must meet or exceed the Cost Share requirement of $1 of Cost Share for $1 of Grant Funds. </li></ul><ul><li>Entrepreneurial Success Fund </li></ul><ul><li>The Lead Applicant must meet or exceed the Cost Share requirement of $1 of Cost Share for $1 of Grant Funds. </li></ul><ul><li>Combined Fund Proposal </li></ul><ul><li>The Cost Share requirement applies to the total combined request and must meet or exceed the Cost Share requirement of $1 of Cost Share for $1 of Grant Funds. In a combined proposal, Cost Share may be overmatched on the Fund(s) or entrepreneurial assistance and the excess cost share raised may be used to meet the Cost Share requirement for the other proposed activities. </li></ul><ul><li>Note: Cost share is not required from each and every collaborator on a proposal. </li></ul>
    20. 20. Escrow Agreement <ul><li>Within 90 days of the beginning of the Project Period, all Pre-Seed Fund Grantees must select an escrow agent who is a public depository; a list of the approved public depository banking institutions will be provided by Development. </li></ul><ul><li>Grantees must sign an escrow agreement in a form provided by Development. </li></ul><ul><li>Grantees may then receive an initial advance payment of up to 15% of the total grant award. Subsequent payments shall be made following the receipt of a written request and are subject to approval of performance reports. </li></ul>
    21. 21. Proposal Evaluation Criteria <ul><li>The following criteria have been designated with the highest </li></ul><ul><li>relevance to and weighting for the OTFPSESI: </li></ul><ul><li>- Alignment of the Proposal with the OTFPSESI </li></ul><ul><li>purpose, goals, objectives, eligibility, funding, and Cost Share </li></ul><ul><li>requirements as described in Section 2 of the RFPs </li></ul><ul><li>- Quality of responses to the requirements of the RFPs as </li></ul><ul><li>outlined in sections 3.3.6 through 3.3.12 of the RFPs </li></ul><ul><li>- Compliance with the RFPs’ administrative requirements </li></ul><ul><li>- Past Performance </li></ul>
    22. 22. Proposal Evaluation Criteria <ul><li>- 3.3.6 The Opportunity </li></ul><ul><li>- 3.3.7 Operations </li></ul><ul><li>- 3.3.8 Success and Track Record </li></ul><ul><li>- 3.3.9 Projected Economic Impacts & Regional Priorities </li></ul><ul><li>- 3.3.10 Experience and Qualifications </li></ul><ul><li>- 3.3.11 Budget </li></ul><ul><li>- 3.3.12 Collaborator Information/Letters of Commitment </li></ul>
    23. 23. Review Process <ul><li>Administrative Review </li></ul><ul><ul><li>Conducted by Development staff </li></ul></ul><ul><ul><li>Receive and process proposals to screen Proposals for compliance with the objective content requirements defined in this RFP. </li></ul></ul><ul><ul><li>Forward to external evaluators for technical review </li></ul></ul><ul><li>Technical Review </li></ul><ul><ul><li>Conducted by external evaluators </li></ul></ul><ul><ul><li>First-stage review to determine which proposals meet the charge of RFP. </li></ul></ul><ul><ul><li>Passing proposals move to the second-stage review in which applicants address questions submitted to Development by the evaluator. </li></ul></ul>
    24. 24. Timeline <ul><li>November 17, 2009 RFP Released </li></ul><ul><li>December 16, 2009 LOIs due by 2:00 p.m. </li></ul><ul><li>January 29, 2010 Proposals due by 2:00 p.m. </li></ul><ul><li>February – March 2010 Review Process </li></ul><ul><li>Approximately March 2010 Award Announcements </li></ul><ul><li>Be sure to use the current version of the RFP and application / budget forms </li></ul>
    25. 25. RFP Modifications & Clarifications <ul><li>From time to time, it may be necessary to modify or clarify portions of the RFPs, as well as the forms. In that event, we will post a document titled “RFP Modifications and Clarifications” to the RFP page for the particular program on the Third Frontier website. The document will have an explanation of any changes. </li></ul><ul><li>It is your responsibility to be aware of any RFP modifications and to ensure that your proposal conforms with any such modifications </li></ul>
    26. 26. Policy & Administrative Questions <ul><li>All questions must be submitted via e-mail </li></ul><ul><li>E-mail: [email_address] </li></ul><ul><ul><ul><ul><ul><li>with subject line “OTFPSESI Q&A” </li></ul></ul></ul></ul></ul><ul><li> * LOIs are to be submitted to the respective e-mail address, with </li></ul><ul><li>the subject line of “2010 OTFPSESI LOI” </li></ul><ul><li>Frequently asked questions will be posted on the Third Frontier web site: </li></ul>
    27. 27. Major Changes from FY09 RFP <ul><li>No new Lead Applicants are eligible to apply for funding; </li></ul><ul><li>Eligible Lead Applicants are limited to Existing Pre-Seed Funds and management teams of Existing Pre-Seed Funds or existing Ohio Third Frontier Entrepreneurial Signature Programs; </li></ul><ul><li>Proposals must include at least one collaborator; </li></ul><ul><li>Cost Share is 1:1 for all applicants and all activities; and, </li></ul><ul><li>Proposals from an eligible Lead Applicant that combine the capitalization of a For-Profit and/or a Not-For-Profit Pre-Seed Fund with support for entrepreneurial assistance activities will be accepted. Cost Share requirement will apply to the total combined request and must meet or exceed a 1:1 ratio. </li></ul><ul><li>Budget Forms have changed – only use the changed Forms! </li></ul>
    28. 28. Things to Avoid <ul><li>Collaborations </li></ul><ul><li>Failure to consider/involve OTF grantees when it makes sense </li></ul><ul><li>Involving OTF grantees when it doesn’t add value </li></ul><ul><li>Window dressing and a cast of thousands </li></ul><ul><li>Hollow letters of support </li></ul>
    29. 29. Things to Avoid <ul><li>Administrative Issues </li></ul><ul><li>Failure to submit a Letter of Intent </li></ul><ul><li>Late proposals – deadline is 2:00 p.m. </li></ul><ul><li>Ignoring page limitations </li></ul><ul><li>Appending material </li></ul>
    30. 30. Questions?