The Center for Innovative Technology (CIT) drives innovation, technology commercialization, and entrepreneurship in Virginia. CIT provides various types of funding to support startups and early-stage companies, including angel investors, venture capital, and CIT's own GAP Funds. The GAP Funds focus on seed-stage companies in Virginia, investing up to $200,000 in technologies, biotech, energy and other industries with the goal of generating returns of over 5 times the initial investment within 5 years.

1. Advancing Innovation &
Entrepreneurship
November 24, 2015
Presented by
Sean Mallon
1
© 2014 Center for Innovative Technology

2. CIT Mission
• CIT drives innovation, technology and
entrepreneurship in Virginia to foster research
commercialization, create new high-growth, high-
tech companies, promote innovative solutions,
expand broadband and grow Virginia’s innovation
economy.
2
© 2014 Center for Innovative Technology

3. Funding Sources
3
Sources of New Venture Financing
Development Start-up Early
Growth
Rapid
Growth
Exit
Entrepreneur
Federal and State
Government Grants
Friends and Family
Angel Investors
Strategic Partner
Venture Capital
Asset-based Lender
Equipment Lessor
SBIC
Trade Credit
Factor
Mezzanine Lender
Public Debt
IPO
Acquisition, LBO, MBO
Black shading indicates primary focus of investor type.
Gray shading indicates secondary focus, or focus of a subset of investors.
© 2014 Center for Innovative Technology

4. Angel Investors
4Source: Startups.co
© 2014 Center for Innovative Technology

5. Angels Investors (cont.)
5Source: Startups.co
© 2014 Center for Innovative Technology

6. CIT GAP Funds
Investment Criteria
6
Management Team / Founder
 Full-Time Commitment
 Integrity, Passion, Creativity
 Coach-ability
 Record of High Achievement
Investment Stage
 Seed-Stage Focus
 Up to 36 Months Prior to Series-A
 Pre-prototype – Newly-Launched
Technologies
Investment Range
 GAP Investment
 < $200K; >$100K Tranched
 < $1M Concurrent Syndication
 < $1M Previous Financing
 Follow-On Investment up to $250K
 Innovation Investment
 < $75K per Company
 > $50K Requires IAB Review
Proprietary Advantage
 Unique Technology
 Defensible IP Position
 Difficult-to-Replicate
Scalability
 Markets with Big Buying Power
 Potential for Dominant Market
Position
 >$20M Top-Line within 5 years
Returns
 > 5X Cash-on-Cash Return
Industries
 Technology
 BioLife
 Energy
Geographic Focus
 Virginia-Only
© 2014 Center for Innovative Technology

7. CIT GAP Funds
Histogram
7© 2014 Center for Innovative Technology

8. 8
Sean Mallon
sean.mallon@cit.org
703-689-3045
Questions?
© 2014 Center for Innovative Technology