MTI Development Award Program


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MTI Development Award Program

  1. 1. Development Award Program<br />405 WATER STREET, SUITE 300<br />GARDINER, ME 04345<br />207.582.4790<br />
  2. 2.
  4. 4. Development Award Program<br />3rd anniversary date of commercialization 30% (balloon interest) of unpaid balance<br />Repayment Requirements<br />Commercialization<br />After 3 years the unpaid balance will increase by 30% (balloon interest) and subsequently by 10% compounded annually. The agreement requires a minimum payment of 2% of gross sales from the product or process developed (applied directly to the principal).<br />Award Made<br />Repayment within 3 years after commercialization – no interest.<br />R&D Effort<br />(no interest)<br />Timeline may vary<br />2<br />1<br />3<br />4<br />5<br />6<br />7<br />8<br />9<br />10<br />0<br />YEAR<br />The 10% interest will be calculated on each anniversary date.<br />Post Commercialization - Full payback required by year seven. <br />
  5. 5. Development Award Program<br />Process Outline<br />Complete Applications reviewed by Peer Reviewers<br />Receipt of Applications<br />Pre-application<br />(not mandatory)<br />Invited Applicants Interviewed by the Development Award Review Committee<br />Strongest Projects Recommended to MTI Board for Funding<br />Technology Board Review Committee (TBRC) Meeting and Evaluation<br />
  6. 6. Development Award Program<br />Process Timeline<br />
  7. 7. Development Award Program<br />Evaluation Criteria<br />STEP ONE: Peer Reviewers - Scientific and Technical<br />Merit;up to40points maximum<br /><ul><li>20 points: Degree of innovation and competitiveness of the technology-based, product, service, or process
  8. 8. 15 points: Quality of the scientific, technical and supporting resources
  9. 9. 5 points: Likelihood of the project to result in significant intellectual property position</li></li></ul><li>Development Award Program<br />Evaluation Criteria<br />The American Association for the Advancement of<br />Science andMTI staffWillselect qualified peer<br />reviewers from within thetechnical and commercial<br />fieldof the applications. Peerreviewers will perform<br />the scientific and technicalevaluationand provide<br />a brief summary statement for eachapplication,<br />indicating its strengths and weaknesses. <br /><br />
  10. 10. Development Award Program<br />Evaluation Criteria<br />STEP TWO: The Technology Board Review<br />Committee (TBRC) Evaluation Volunteer<br />technical/business advisors will evaluate<br />applications using MTI’sDevelopment Award<br />evaluation criteria and determine which projects<br />Bestmeet MTI’s objectives. <br />Technology Sectors<br /><ul><li> Advanced Technologies for Forestry & Agriculture
  11. 11. Aquaculture and Marine Technology
  12. 12. Biotechnology
  13. 13. Composite Materials Technology
  14. 14. Precision Manufacturing Technology
  15. 15. Environmental Technology
  16. 16. Information Technology</li></li></ul><li>Development Award Program<br />Evaluation Criteria<br />Section 1: Potential Economic Impact in Maine; up<br />to 40 pointsmaximum<br /><ul><li>10 points: Depth of interest by targeted commercial/industrial market.
  17. 17. 10 points: Growth potential for the technology-based product, service, or process.
  18. 18. 10 points: Potential for high revenue per retained or new employees in Maine.
  19. 19. 10 points: Quality and feasibility of the financial projections and sustainability of the business commercial model. </li></li></ul><li>Development Award Program<br />Evaluation Criteria<br />Section 2: CEO and Management Team<br />Capability,Capacity, SelfAssessmentandPlan;<br />up to 20 pointsmax<br /><ul><li>5 points: Applicable experience, both technology/product, targeted industry/market and negotiating of strategic alliances, major customer contracts and licensing agreements.
  20. 20. 5 points: Capability related to business stage and size, experience with planning, operations, recruiting, financial including prior profit and loss responsibility and securing of capital.</li></li></ul><li>Development Award Program<br />Evaluation Criteria<br />Section 2 Continued: CEO &Management Team<br /><ul><li>5 points: Self-assessment and plan for improvement, as required including any prior or planned attendance at applicable management training seminars and courses.
  21. 21. 5 points: Plans to draw on advice and expertise through coaching, mentoring, and technology and/or business boards. Please list permanent advisors and board members including the CEO and management team’s relationship with these individuals and how they were selected. Is their commitment formalized in a written and/or compensated way?</li></li></ul><li>Development Award Program<br />Evaluation Criteria<br />STEP THREE: Highest quality applications will<br />participate in interviews <br />15-minute presentation with submission of written<br />responses to questions raised in the review to date<br />15 minutes of questions and answers<br /><ul><li>Remember: This is the first time the applicant has the opportunity to answer questions raised during the review.
  22. 22. Anticipate obvious questions and account for them in the proposal.</li></li></ul><li>Development Award Program<br />Evaluation Criteria<br />STEP FOUR: Recommendations and Award Decisions <br />The funding recommendation will be communicated to the MTI Board of Directors for final consideration. The MTI Board of Directors will consider the highest quality applications recommended for funding across all sectors and make the final funding decision based on the reviews and recommendations of the peer reviewers, TBRC and the interview. <br />
  23. 23. Development Award Program<br /> Application<br />Writing a good application is easier than you think.<br /><ul><li>Think positively, proactively: The application process can be very rewarding.
  24. 24. Base it on a quality business plan.
  25. 25. Help ensure your success:
  26. 26. Follow directions and a logical process.
  27. 27. Seek help from others when needed.
  28. 28. Put in the time.</li></li></ul><li>Development Award Program<br />Application<br />Ensure a “Best Effort” Application.<br /><ul><li>Base it on thorough research:
  29. 29. What has been done or is in the works.
  30. 30. What could work or compete in the future.
  31. 31. Test it among peers and professionals.
  32. 32. Organize a team capable of undertaking the project.</li></ul>Tips: <br /><ul><li>Do not work in a “silo.”
  33. 33. One can be too close to a project to beobjective or clear.
  34. 34. Understand that external technical and scientific peer review is a criticalcomponent of the MTI approval process.</li></li></ul><li>Development Award Program<br />Application<br />Ensure a “Good Fit”<br />Know what the funder really wants:<br /><ul><li>Read, reread the application.
  35. 35. Research what MTI has funded before.
  36. 36. Explore the background and ask questions.
  37. 37. Consider whether the project is the best use of time and resources.</li></ul>Tips:<br /><ul><li>You’re a “technical sales person” with a product. Convince the decision-makers of the value proposition.
  38. 38. Be wary of irrational exuberance.</li></li></ul><li>Development Award Program<br />Application Challenges<br />Remember the Human Reviewers<br />Approach: Balance “save the world” vs. narrow focus to avoid doubt.<br />Content: Balance too little information vs. too much that numbs.<br />Claims: “Unsubstantiated” claims are just that.<br />Organization and Format: Lead the reviewer down a path to avoid confusion.<br />Writing Style: Pick a style and stick with it for readability.<br />Balance the technical and marketing: Avoid jargon.<br />Address obvious questions and weaknesses.<br />
  39. 39. Development Award Program<br />Application Challenges<br />Comprehensive Project Plans: Set aside preparation time and take an approach with phased submission, if the entire project is too large. <br />Appeal for 3 Audiences: Technical, Maine Impact and Business<br />Matching Funds Tips:<br /><ul><li> Make the most of equipment as “in kind.” Cash is king.
  40. 40. Unpaid personnel time is also a match.
  41. 41. Same rules apply to match funding that apply to MTI cash. </li></li></ul><li>Development Award Program<br />Application Challenges<br />4-Month Lag Time between Application and Award: Hedge your bets. Expenses may begin on the submission date at your own risk.<br />Payback Feasibility Demonstration and Next Steps Discussion for Project Completion.<br />
  42. 42. Development Award Program<br />Application Objectives<br />SMART: Paint a Clear Picture<br /><ul><li>Specific:Be precise about the project.
  43. 43. Measurable:Quantify the objectives.
  44. 44. Achievable:Are you attempting too much?
  45. 45. Realistic: Right people, money, equipment, material, time?
  46. 46. Timing: State clearly the objectives’ dates.</li></ul>Tip: <br /><ul><li>Keep “objectives” and “goals” distinct. Goals tend to be less well defined and focus on the long term. </li></li></ul><li>Development Award Program<br />Lessons Learned<br />PublicKnowledge:<br />The summary will be<br />included in the official<br />MTI Development<br />Award press release if<br />the project is funded.<br />First Impression: <br />The Executive Summary<br />can be the first thing a<br />reviewer sees.<br />Commercialization information is key to the success of the application and must be included.<br />In addition, a summary of this information can be included in the application’s executive summary. This section includes details on:<br /><ul><li> Company Profile
  47. 47. CEO & Management Team
  48. 48. Project Description/Tasks
  49. 49. Commercialization Plan</li></li></ul><li>Development Award Program<br />Lessons Learned<br />Innovation<br /><ul><li>Use examples to describe why this technology is unique
  50. 50. Discuss the technical modifications and why if this is a transferred technology.</li></ul>Quality of Resources<br /><ul><li>Describe the personnel, assets including plant and equipment, the match, and the utilization of these resources toward the development and research leading to commercialization.</li></li></ul><li>Development Award Program<br />Lessons Learned<br />Quality of Resources<br /><ul><li>If the personnel and assets are not in place, describe how and when you will install them.</li></ul>Tips: <br /><ul><li>Reviewers appreciate the self identification of weaknesses and strengths.
  51. 51. Address the possibility of change and that specific skills may not be there.
  52. 52. The applicant’s ability to self-identify expertise gaps and outline plans to address gaps will be strongly considered in the review process.</li></li></ul><li>Development Award Program<br />Lessons Learned<br />The best commercialization plans demonstrate aclear<br />understanding of themarket and identificationof the<br />Importantfactors needed to achieve sales.<br /><ul><li>Competition: direct and indirect
  53. 53. Direct applications
  54. 54. Entry points, areas of incremental improvement for future revenues
  55. 55. Product life cycle
  56. 56. Plan to implement a model to establish and maintain market position
  57. 57. Pricing, targeting, identification of first customers</li></ul>Tip: More proposals are weak in demonstrating an immediate market need than in any other aspect.<br />
  58. 58. Development Award Program<br />Lessons Learned – Form B <br /><ul><li>Link the milestone chart to the project description and tasks.
  59. 59. Assure that milestones revolve around major go- and no-go decisions.
  60. 60. Define very clearly the deliverables and desired results.
  61. 61. Be realistic: Do not stretch or squeeze timelines.</li></ul>Tips: Arithmetic counts - Construct the milestone chart<br />torun consecutively and not concurrently. This will<br />requiredetailed task and cost mapping vs. time.<br />
  62. 62. Development Award Program<br />Example Gantt Chart to help determine cost of tasks in Form B<br />$<br />$<br />$<br />Determine cost of tasks within each milestone.<br />$10 K<br />A<br />$20 K<br />$40 K<br />$5 K<br />B<br />TASK<br />$30 K<br />$50 K<br />C<br />$40 K<br />$30 K<br />D<br />Milestone #1<br />Milestone #2<br />Milestone #3<br />TIME<br />
  63. 63. Development Award Program<br />Lessons Learned – Form C<br /><ul><li>Assure that the revenue projections agree with the assumptions as detailed in the project description.
  64. 64. Consider decreased costs, which are not utilized much in new products, but might be realized in the years following commercialization.
  65. 65. Assure that the capital raised or invested agrees with the business strategy described in the project description.</li></li></ul><li>Development Award Program<br />Lessons Learned – Form C Continued<br /><ul><li>Differentiate clearly the number of new jobs vs. retained and the average salary.</li></ul>Tips:Pick a time frame that is believable, defensible.<br />Remember to include 1 page of key assumptions<br />(required). <br />
  66. 66. Development Award Program<br />Lessons Learned – Form D<br /><ul><li>Construct realistic hourly rates (based on actual pay rates or use the Bureau of Labor Standards website). MTI does not have a set rate for consultant/contractor services. However, a reasonable rate is expected
  67. 67. Capital expenditure such as buildings or production equipment will only be considered when the purchase is necessary and primarily intended for the project.</li></ul>Tip: Optional 2 additional pages - to justify any budget cost that may seem unusual (indirect costs, purchase price agreements.)<br />
  68. 68. Development Award Program<br />Lessons Learned – Form D<br /><ul><li>Projects may begin the proposed scope of work on the Development Award submission deadline date. Pre-award expenditures are at the applicant’s risk.
  69. 69. 20% or less of MTI funding and project budget are allowed for indirect costs and 15% or less is allowed for sales and marketing.
  70. 70. MTI funds cannot be used to recoup sunk costs incurred prior to the submission deadline and these costs may not be recovered or used as match for the MTI Project.</li></li></ul><li>Development Award Program<br />Lessons Learned – Forms<br />Form E<br /><ul><li>Consumer credit authorization form (two pages) .
  71. 71. No credit checks on those companies whose proposal is not forwarded to the interview.
  72. 72. Consumer credit reports are required on both the companies and primary principals of companies approved for MTI funding (definition:aprimary principal is any person having an ownership interest in the company of twenty percent (20%) or more.) </li></li></ul><li>Development Award Program<br />Lessons Learned – Forms<br />Form F<br /><ul><li>List all Patents, Copyrights, Trademarks, Trade Secrets, or any other intellectual property.</li></ul>Form G<br /><ul><li>Recipient must begin repayment of the Development Award within one year of successful commercialization (as defined in Section 11.1 of the Agreement). </li></li></ul><li>Development Award Program<br />LessonsLearned – Other <br />Personnel biographies<br /><ul><li> 2 pages each
  73. 73. Required for all key personnel, consultants and contractors
  74. 74. Be sure that each indicates the experience relevant to the project.</li></li></ul><li>Development Award Program<br />LessonsLearned – Other <br />Commitment letters<br /><ul><li>Letters must account for all items for cash match, in-kind match, partnerships, contractors and consultants.
  75. 75. Match must be secured within 6 months of award.</li></ul>Tips:This is an opportunity for the supporter to<br />elaborate on the commitment in time or money<br />with key proposal points.Letterhead with signatures<br />is preferred over email.<br />
  76. 76. Development Award Program<br />Lessons Learned – Other <br />Supporting Documentation<br /><ul><li>Optional, but can be critical.
  77. 77. Up to 8 pages
  78. 78. Contents: market data, letters from experts in the field, partners, collaborators, suppliers, potential customers.
  79. 79. Be sure that each indicates the experience relevant to the project.</li></li></ul><li>Development Award Program<br />Lessons Learned – Other <br />Tips<br /><ul><li>Supporting documents can be the strongest components of An application.
  80. 80. Particularly strong are those from credible, recognizable collaborators and customers.
  81. 81. Help write the letter if it is not compelling enough. Cookie-cutter letters are weak and unconvincing.</li></li></ul><li>Development Award Program<br />Suggested Next Steps<br />Download and read the Development AwardRequest for Application.<br /><br />As you read, think about:<br />What is your product or technology?<br />To which targeted sector does your technology fit best?<br />What is the current stage of development?<br />What is the Scope of Work contained in the Application?<br />How will Maine benefit from the successful completion of your project?<br />Approximately how much money will be requested from MTI?<br /> <br />
  82. 82. Development Award Program<br />Pathway to an award<br />Submit a non-confidential summary.<br />Participate in a discussion with MTI staff and attend a workshop.<br />Download a copy of the Request for Application (RFA). <br />Register online (Form A).<br />Prepare, proofread, and submit an application.<br />Receive word of an award decision rendered by MTI committees.<br />
  83. 83. Development Award Program<br />MTI Team<br />Betsy Biemann, President<br />Linda Adams, Program Assistant<br />Shane Beckim, Seed Grant Specialist<br />Roger Brooks, Commercialization Support<br />Jim Fecteau, Finance & Administration Manager<br />Jessie Gogan, Development Award Specialist<br />Joe Migliaccio, Manager, Business Innovation Programs<br />Andrea Phillips, Office Manager<br />Patti Sutter, Program Assistant<br />Deb Cook, Consultant, Communications<br />Martha Bentley, Consultant, MTI Bond Programs<br />Scott Stefanski, Consultant, Cluster Initiative Program<br />Karen West, Consultant, SBIR/STTR Programs<br />
  84. 84. Open Questions?<br />405 WATER STREET, SUITE 300<br />GARDINER, ME 04345<br />207.582.4790<br />helps to CREATE and sustain <br />high-paying JOBS in existing and new companies<br />