ADVANCED INDUSTRIES ACCELERATOR GRANT PROGRAM APPLICATION GUIDELINES

Transcription

1 ADVANCED INDUSTRIES ACCELERATOR GRANT PROGRAM APPLICATION GUIDELINES Contents I. Proof of Concept (POC) Grant Program...3 A. Project Scope... 3 B. Funding... 5 C. Eligibility... 7 D. Application Process... 8 E. Application Instructions... 9 II. Early-Stage Capital and Retention (ESCR) Grant Program A. Project Scope B. Funding C. Eligibility D. Application Process E. Application Instructions III. Infrastructure Grant Program (IG) A. Project Scope B. Funding C. Eligibility This document provides information for completing the Advanced Industries Acceleration (AIA) Grant Program Application. See the Program Overview document for high-level information on the program s purpose, criteria, rules, grant review process and other information. Page 1 of 21

2 The AIA Program s intent is to commercialize technologies in Colorado that are at a stage of development where market funds are not available. Advanced Industries are: Advanced Manufacturing, Aerospace, Bioscience, Electronics, Energy and Natural Resources, Infrastructure Engineering, and Technology and Information. The AIA Grant Program supports technology commercialization and industry development through the programs described in this document. Page 2 of 21

3 I. Proof of Concept (POC) Grant Program Grant funding is used to identify and pull technologies from research institutions where they were discovered and connect them to the private sector where they can be developed into commercialize-able products. These grants should provide significant economic impact or competitive advantage for Colorado and the advanced industries by accelerating the pace of applied research and leading to the rapid commercialization of products and services. Grants support the commercialization of technologies at research institutions at two distinct stages along the commercialization pathway: Pre-Commercial Research (Phase I) and Commercialization Preparation (Phase II). A. Project Scope Projects accelerate product or service commercialization and are not to be used for basic research. Phase I and Phase II, POC Grants Phase I and Phase II awards are available exclusively to research institutions and are capped at $150,000 across both phases per grant. i. Phase I: Pre-Commercial Research Pre-Commercial Research includes proof of principle studies and other studies on intellectual property and resulting prototypes that demonstrate the utility of a technology for a specific application. Funding during Phase I will be granted as follows: 1. Proof of Principle up to $20,000 of Phase I awards may be used to fund the evaluation and analysis of the technology based on extensive investigation or research to support the commercialization likelihood. This requires physical proof that the concept might work. Grant work must objectively uncover the strengths and weaknesses of an existing technology, opportunities and threats present in the market, resources required to carry through, and ultimately the prospects for success. To reach this stage, the idea has been disclosed and has support from the research institution investigatory team to move forward. 2. Intellectual Property (IP) Protection up to $10,000 of Phase I awards may be used by research institutions to pay for IP protection expenses related to the technology. Prior to reaching this stage, proof of principle (physical proof that the concept might work), as well as support from the relevant research institution investigatory team with documentation of commercial potential and necessity for intellectual property protection has been established. 3. Prototypes and Technical Validation up to $150,000 or remaining funds ($150,000 less prior Proof of Principle or IP protection POC funding) may be used for the creation of a working prototype to test the functionality of a specific technology to determine that the prototype or product works as intended. Such validation will include testing relevant to the particular advanced industry. At this stage, the following have already been established: Page 3 of 21

4 ii. Proof of principle analysis and relevant IP protection Product applications identified What is it good for? Assuming it works, who would care? Relevant research institution investigatory team suggesting moving forward and that the technology has commercial potential. Milestones and metrics to determine at what point the prototype works as intended. For example, bioscience may include marker identification and assay formatting, analytical and clinical validation, clinical trials, testing (preliminary and animal), regulatory planning and human trials. 4. Phase I applications should be completed within 24 months for non-bioscience projects, and 36 months for bioscience projects, and in each case must include the applicable 1/3 match. 5. Upon the achievement of specified project milestones, Phase I awardees may request funding for Phase II via a Transition Request (as described below, this is a streamlined process, compared to a full application). Phase II: Commercialization Preparation Phase II awards are capped at $25,000 (this amount is included in the overall $150,000 cap). Commercialization preparation is the process of creating a commercial opportunity assessment for a technology and the development of a commercialization plan. In order to qualify, applicants must present evidence of satisfactory completion of Phase I requirements (proof of principle, prototype and technical validation studies). Funding during Phase II may be used to fund the following: 1. Market Assessment (up to $20,000) includes market analysis based on the technical capabilities of the prototype, and the development of commercialization or business plans. This phase may also include additional feasibility studies, opportunity identification, manufacturability, scalability, regulatory barriers, production or material costs, market acceptance, and the like. At this stage, a prototype has already been developed and technical validation is complete. 2. Start-Up Based on a Commercialization Plan, up to 20% of a Commercialization Preparation grant (up to $5,000) can be used for corporate formation costs across a broad spectrum of start-up related activities such as legal formation, IP strategy, investor strategy and marketing (collateral, website, etc). Applicants are encouraged to seek support from resources such as SBDC, incubators, accelerators, and others. At this stage, commercialization plans showing a positive market opportunity have been completed. Page 4 of 21

5 B. Funding 3. Phase II Projects should be completed within 3 months, and must include the applicable 1/3 match. i. Project Phase Once an application is approved, applicants must execute a formal Grant Agreement with OEDIT prior to obligating or spending any grant funds. Project milestones and budgets will be defined in the Agreement. Funding limits apply to project phases; these are listed above in the Project Scope description. ii. iii. Award payments for Phase I projects will be made as follows: 50% following execution of the grant agreement, 25% upon submission and approval of a mid-term report, and 25% upon submission and approval of a final report. Award payments for Phase II projects will be made as follows: 50% following execution of the grant agreement, 25% upon submission and approval of a mid-term report, and 25% upon submission and approval of a final report. Unused funds must be returned to OEDIT and the Program Fund. Matching Funds A POC grantee must have dedicated money from the associated research institution that is at least 1/3 of the requested grant amount. Dedicated money is cash in an account held by the grantee; funds are traceable and committed to the execution of the project work. Dedicated funds are necessary at the time of grant execution. In-kind contributions do not satisfy matching requirements. Matching funds cannot be OEDIT funds, neither directly received, nor received through a third-party. POC Fund Allocations to CO Research Institutions Minimum set amounts for POC grants are allocated to state research institutions that are nonprofit research institutions (both based in and operating in Colorado), have contributed at least 1% of the research enterprise of all Colorado-based research institutions, and have been granted at least one POC grant award within the last 12 months. Page 5 of 21

6 Total R&D Expenditures % of CO Total (est) 15% of $14.5 million BDEG Allocation Final AIA Allocation Research Institutions University of Colorado (All Campuses) $781,109, % $1,290,314 $822,938 $467,376 Colorado State University $375,000, % $619,462 $352,688 $266,774 National Jewish Health $76,614, % $126,559 $156,750 $0 Colorado School of Mines $61,795, % $102,079 $102,079 University of Denver $19,252, % $31,802 $31,802 University of Northern Colorado $2,896, % $0 iv. Allocations are based on actual R&D expenditures, as reported by the research institutions, for the latest fiscal year ending June 30 th, and are updated annually. A research institution meeting the requirements above but not included in the allocation may ask to be included in the minimum allocations; this may reduce the allocations for all research institutions. Grant Maximum A Project or technology with a particular application, associated with a Primary Investigator, may receive grant awards up to $150,000, maximum, unless the award cap is lifted as described herein. The maximum grant award applies to AIA and the Bioscience Discovery Evaluation Grant (BDEG) programs combined. v. Use of Funds The expenditure of both grant and matching funds must comply with an approved project budget. Once an applicant has been notified of an award, they may begin spending matching funds. Grant funds may not be spent until a Grant Agreement has been executed (received final signature by the State Controller or designee). vi. POC Claw-Back Provision The intent of the AI Grant program is to license technologies to organizations that will actively pursue commercial development of the product or technology with the majority of operations in Colorado. Therefore, in the event that a technology supported by a Phase I or Phase II POC Program award is licensed to an organization NOT commercializing, developing, manufacturing or producing products or services based upon such licensed technology in Colorado, the research institution shall reimburse the AI Grant Program by payment of a sum equal to twenty percent (20%) of any gross licensing revenue resulting from such a license each year until the AI Grant Program is reimbursed for the full amount of the award. Such reimbursements Page 6 of 21

7 vii. C. Eligibility shall be made to OEDIT and will be used to support future AI Grant programs and activities. POC Grant caps may be lifted for projects as follows: 1. Joint Proposal Two or more research institutions submit a joint proposal where the Research Institutions will share joint ownership of IP or patents, OR where commercialization activities will take place at more than one research institution and at least two of the joint applicants should receive a minimum of 25% of any program award. 2. A single research institution whose project impacts more than one advanced industry. Applicants self-identify the industry or industries that the project will impact. If Advanced Manufacturing, Electronics, or Information Technology (enabling industries) are among the identified industries, the application must directly address how the enabling technology will impact the scalability, process improvement, or market adoption of the commercial product for the nonenabling technology. i. Research institutions located and operating in Colorado that have a Technology Transfer Office (TTO) are eligible to submit Proof of Concept ( POC ) grants for consideration in a competitive Request for Applications ( RFA ) process that is administered by OEDIT. Research Institutions must be located and operating in Colorado and are a: ii. iii. 1. Public or private, nonprofit institution of higher education or teaching hospital; 2. Federal Laboratory 3. Private technology and research center, or 4. Private, nonprofit medical and research center. A TTO must qualify with OEDIT by submitting a letter demonstrating that they act on behalf of a qualified research institution AND have the processes, structures and personnel necessary to evaluate, protect, market, license, monitor, and manage the wide range of a research institution s discoveries, inventions, and other intellectual property. Such TTO must arrange for the sale or licensure of technologies on behalf of the research institution to private entities that will develop and manufacture resulting products in Colorado. A sample letter for qualification is found here: Matching Funds. Though dedicated funds are required to execute a grant, a technology transfer office may apply to the program with only a commitment for matching funds. A typical commitment is a grant award notice, or a pledge of departmental or investigator funds on research institution letter-head. Page 7 of 21

8 iv. Selection Preference is given to proposals that: 1. Impact more than one advanced industry 2. Involve more than one research institution 3. Involve research sponsored by an AI Colorado Company at the applying research institution 4. Originate from a nonprofit research institution D. Application Process i. Initial Application - Qualified applicants may initially apply for an award at any Phase of the POC Program or at any stage along the Early Stage commercialization timeline. ii. iii. The intent of the Initial Application is to provide enough information to a group of reviewers so that they can sufficiently evaluate the commercialization potential of a technology and the value of the proposed project in advancing the technology toward commercialization. Applicants should draft their Initial Applications with the assumption that the reviewers have an undergraduate/master s level education in both business and the relevant scientific discipline. Transition Request - In order to facilitate the development of technologies through commercialization phases, there is a streamlined application and review to move projects from earlier stages through later development stages. Applicants that have successfully completed POC Phase I may request funding for POC Phase II by submitting a phase transition request. Amendments to milestones or other substance of a project requiring a contract change can also be submitted through the Transition Request process. These project proposals will be assigned by the Grant Manager to an industry specific Sub-Committee of the AI Review Committee for a detailed review. These requests will be presented and discussed at the AI Review Committee meeting and the committee will make a final recommendation to the Advanced Industry Director, who will have the final authority to approve a project s transition to the next phase. Timing Initial Applications and Transition Requests may be submitted during open application windows and will be reviewed every quarter. Application rounds will close on the 1 st day of the month of each calendar quarter (January, April, July and October), with the first applications due on October 1, Complete Initial Applications and Transition Requests submitted by midnight on the 1 st will be considered in that review cycle. For example, applications accepted October 1, will be reviewed in October and November, and the Strategic Oversight Board will vote on these applications in December. Applications will again be accepted January 1. Page 8 of 21

9 iv. Format All Initial Applications and Transition Requests must be submitted using OEDIT s online submission system. Eligible research institutions are provided a link to the SalesForce based application. Research institutions may submit multiple applications. Applications do not have to be completed in one sitting, but must be submitted by the due-date. All required fields must be completed. Incomplete applications may be rejected. v. Rejected Applications Rejected applications may be re-worked and resubmitted in the next grant cycle. There is no appeals process. E. Application Instructions In applying for this grant, you are providing information to the State of Colorado. As the submitter, you have an obligation to carefully review all information provided to ensure it is accurate to the best of your knowledge and it does not contain any omissions, misrepresentations or factual errors. The reviewers of this application reserve the right to validate or check any information provided by the applicant, and if errors, omissions or misrepresentations are found, to modify the responses to correct for these deficiencies in evaluating the application and/or cancel any grant awards based on such deficiencies. Deliberately providing factual errors, omissions or misleading information to the State of Colorado as part of this application may be subject to penalties and sanctions as allowable by law. i. Applicant Information ii. This section is not scored, but insufficient answers can cause the application to be rejected. This section consists of identifying information on the applicant. Questions are self-explanatory. Q 7 & 8. If this is a joint application by multiple research institutions, explain the joint applicants, structure of joint ownership, and how the project budget is distributed among joint applicants. Such proposals may seek funding above the project cap; answers to this question will help determine whether or not the grant cap will be lifted. Project Summary & Grant Amount This section is not scored, but insufficient answers can cause the application to be rejected. This section gives a brief overview, identifies the high-level milestones already accomplished and those to be achieved during the project, summarizes the project proposal, and identifies total grant dollars requested. Identify source of matching Page 9 of 21

10 iii. iv. funds available at the research institution, which can be any grants, federal funds or personal investments. OEDIT funds may not be used as match. Applicant must identify the AI applicable to the technology. Explain how the technology being developed impacts the AI. When two or more AIs are selected, and applying for a grant of more than $150,000, if one of the industries selected is Advanced Manufacturing, Electronics or Information Technology (enabling industries), the application must directly address how the enabling technology will impact the scalability, process improvement, or market adoption of the commercial product for the non-enabling technology. Stakeholder Collaboration This section is scored. It is important that these questions be answered. These help determine the statutory application selection preferences. OEDIT will review and confirm accuracy OEDIT may modify the applicants answer for scoring purposes if the answer is not accurate. Technological Merit This section is scored. Questions are self-explanatory. v. Market & Economic Potential vi. vii. This section is scored. Questions are self-explanatory Commercialization Path & Risk This section is scored. Questions are self-explanatory Q60. In composing a project timeline, utilize the sample outline in the Resources section on the AIA webpage this should be customized to reflect the specifics of the proposal. Personnel, Budget & Plan This section is scored. Q69. Utilize the budget template in the Resources section on the AIA webpage this may be customized to reflect the specifics of the proposal and institutional accounting systems. Page 10 of 21

11 II. Early-Stage Capital and Retention (ESCR) Grant Program Grant funding is used to fund companies using technologies developed in proof of concept grants and other early stage start-ups that have created viable products that meet a market need and that can be created or manufactured in Colorado and exported globally. These grants should enhance the commercialization of advanced industry products or services in Colorado. Grant funding will not compete with existing marketplace funding opportunities, but rather is meant to supplement and fill an existing void or capital market s tendency to under-invest in early stage technologies. A. Project Scope Phase III: Early Stage Development Early Stage Development grants support technology commercialization funding product development in preparation for a product launch; or the advancement of a product or technology to achieve a commercial milestone that significantly increases the company s value and stability, and better positions the company for follow-on investment - including SBIR, angel funding or venture capital. The resulting product or service must be manufactured or performed in Colorado. Milestones within this phase are: i. Up to $50K of Phase III awards may be used for Model Refinement: 1. Engineering Prototype. Further refinement of prototype. 2. Strategic Marketing Plan. Further refinement of existing strategic marketing plan. Funded marketing activities in this stage will focus on making strategic decisions, including final decisions on selecting the target market, determining product packaging, finalizing pricing, selecting optimal distribution channels, and determining sales and promotion methods and media. Accomplishing this step requires working with a multitude of organizations such as packagers, wholesalers, retailers, shippers and advertisers, and consumer focus groups in some instances. The development and completion of the strategic marketing plan, in written form, is a critical component of a final business plan. 3. Strategic Business Plan. A strategic business plan reflects all the information, data and knowledge that has been collected to date. It must accurately reflect the intent, rationale, conclusions, assumptions, risks and expectations concerning the business venture for the next three-five years. It might be shaped by input from or requirements for investors. At this point, it should be clear whether and what additional investment will be required to achieve the business opportunity. If the business opportunity demonstrates a sales growth rate of 35 percent or greater per year, a dominant market position, and gross revenues of $25 million or more by the fifth year, it could be a good candidate for follow-on financing by venture capital sources. Anything less with any one of these criteria could mean that an angel investor or boot strap approach is in order. If an investor is needed and warranted, the business plan will need a Page 11 of 21

12 ii. iii. section that includes information on the current value of the investment opportunity, the expected rate of investor return, anticipated uses of funds, and a payback strategy. Based on the capital strategy, next steps include the business launch. Up to $250K of Phase III awards may be used for Market Introduction: 1. Pre-Production Prototype. The pre-production prototype step will result in knowledge about the manufacturability of the product, the manufacturing processes, maintainability and reliability, material and component lists, plans for field support, installation and production costs, safety and environmental factors, time schedules, and regulatory requirements. Once the assumptions are finally tested and validated, full production is launched. 2. Market Validation. Prior to producing product in bulk, analysis must be made to determine whether the end-user was satisfied the initial product. The market validation activity is designed to assess the markets receptivity to the product and to the overall effectiveness of the marketing process related to pricing, advertising, selling, distributing, and supporting the product. Constant monitoring of the market reaction from the target market, vendors, and competitors to the product introduction is critical. There are certainly critical adjustments to be made to capitalize and exploit early advantages or to correct early mistakes. Market validation is not a haphazard process. It should be a welldefined project with specific outcomes. In addition to simply discovering the market s satisfaction level with the product, other marketing aspects should be discovered such as the number of closings per contact, sales decision makers, the time for the sales cycle, the rate of sales growth, number of repeat sales, number of returns, customer satisfaction surveys, and many other marketrelated information needs. 3. Business Start-Up. This step is to put in place normal business systems with essential to the enterprises such as human resources, accounting, communications, policies and procedures, legal, and planning. In addition to the internal organizational development activities, focus must be made on the future and where and when the next round of capital will be needed and what the company must accomplish to attract it. Up to $250K of Phase III awards may be used for Commercial Activity: 1. Production. The production activity involves full-scale production. In today s competitive world, production activities must be cognizant of the soft production technologies involved with just-in-time manufacturing, supply chain optimization, e-procurement, lean manufacturing, and team-cell production. As commerce becomes more global, time-to-market, quality and customer satisfaction have displaced price as the dominant economic imperative. OEDIT can connect potential companies to small business or manufacturing assistance Page 12 of 21

13 iv. B. Funding through SBDC, Colorado Association of Manufacturing Technology or state incubators or accelerators. 2. Sales and Distribution. The concept of sales and distribution grows more complex and more sophisticated each year, but if a venture is not growing market share, it will eventually end up in the cross hairs of a competitor s scope. This phase requires a systematic approach to monitoring product performance, customer profiles, and market positioning by utilizing extensive data collection and expert system software programs necessary to provide competitive intelligence to maximize market opportunity. 3. Business Growth. Business growth ultimately depends on more than increasing sales. As the world segments into the old and new economy, it means businesses must be agile and early adopters of new business models and technologies. However, these activities must be accomplished without sacrificing the integrity of business systems and operations. To accomplish this feat requires that the company institutionalize strategic planning as a daily dynamic process. This strategic planning activity must integrate with the overall enterprise management systems. The outcome of this activity should provide a set of critical performance indicators that monitor the health of the enterprise on a continuous, real-time basis. The business growth stage often requires a management team with an entirely different set of skills than the founding team and as a result, funding may be used to support a new management team that can accelerate a high performance company in the growth stage. Companies developing technologies that have received Phase I or Phase II awards may submit a Transition Request for ESCR grants. i. Project Phase Awards of up to $250,000 may be made to companies whose technologies impact a single advanced industry. Once an application is approved, applicants must execute a formal Grant Agreement with OEDIT prior to obligating or spending any grant funds. Project milestones and budgets will be defined in the Agreement. Award payments for Phase III projects will be made as follows: 25% following execution of the grant agreement, or approval of the Transition Request, 50% upon submission and approval of a Mid-term Report, and 25% upon submission and approval of a Final Report. Unused funds must be returned to OEDIT and the Program Fund. Page 13 of 21

14 ii. iii. iv. Matching Funds An ESCR grantee must have dedicated money that is at least 2x the requested grant amount. Dedicated money is cash in an account held by the grantee; funds are traceable and committed to the execution of the project work. Dedicated funds are necessary at the time of grant execution. In-kind contributions do not satisfy matching requirements. Matching funds cannot be OEDIT funds, neither directly received, nor received through a third-party. Grant Maximum A company may receive grant awards up to $250,000 maximum, unless the award cap is lifted as described herein. The maximum grant award applies to AIA and the Bioscience Discovery Evaluation Grant (BDEG) programs combined. Use of Funds The expenditure of both grant and matching funds must comply with an approved project budget. Once an applicant has been notified of an award, they may begin spending matching funds. Grant funds may not be spent until a Grant Agreement has been executed (received final signature by the State Controller or designee). v. ESCR Claw-Back Provision vi. The intent of the AI Grant program is to provide support to businesses that will actively pursue commercial development and manufacture of the product or technology within Colorado. In the event that a company supported by a ESCR Program award relocates or moves outside of the state (and therefore no longer meets the original grant eligibility criteria listed below) within 24 months of the conclusion of a grant, the company shall be obligated to reimburse the AI Grant Program for the full amount of the award, over a payback period of no more than 60 months. Such reimbursements shall be made to OEDIT and will be used to support future AI Grant programs and activities. For purposes of the foregoing, a company will be deemed to have moved its operations out of Colorado if (i) the company does not have a headquarters in Colorado, or (ii) less than 50% of its employees reside in Colorado. ESCR Grant caps may be lifted for projects as follows: The Project impacts more than one Advanced Industry. Applicants self-identify the industry or industries that the project will impact. If Advanced Manufacturing, Electronics, or Information Technology (enabling industries) are among the identified industries, the application must directly address how the enabling technology will impact the scalability, process improvement, or market adoption of the commercial product for the nonenabling technology. Page 14 of 21

15 C. Eligibility i. Companies that: ii. iii. 1. Operate within the advanced industries 2. Have headquarters located in Colorado or have at least 50% of its employees based in Colorado 3. Have received less than $20 million from grants and third-party investors, since inception 4. Have annual revenues of less than $10 million 5. Demonstrate that the technology is adequately through the Proof of Concept Phase (Phase I) - (proof of principle study, owns valid IP -including trade secrets, completed prototype and technical validation and commercialization plan that includes a market assessment confirming market need and opportunity, and initial start-up activities) Matching Funds. Though dedicated funds are required to execute a grant, an otherwise eligible business may apply to the program without dedicated matching funds. The program aims to bridge funding gaps by moving the business forward to a point where market capital is accessible. In support of this goal, a Conditional Grant Award may be given to an applicant without dedicated matching funds. The Conditional Award may support the business in attracting or otherwise securing the required dedicated match for grant execution. Should an ESCR applicant receive an AIA Conditional Grant Award, the business will have to obtain the required dedicated match within 6 months of the notice of the Conditional Award. Selection preference is given to proposals where the company: 1. is developing technology or R&D that impacts more than one advanced industry; 2. is developing technology licensed from a research institution operating in Colorado 3. is or has participated in an entrepreneurship program, or engaged with incubator/accelerator program; or 4. is referred by a VC/Angel investor group that has prepared a written analysis (submitted with the application) that the subject technology has commercial potential, but is too early for their investment criteria. D. Application Process i. Pre-Screen Application This pre-qualification application for the Advanced Industry ESCR Company Grant is designed to verify that you meet the program's basic eligibility requirements before you take the time to complete the full application. Page 15 of 21

16 Please note that after you answer the four simple screening questions in this application, you will receive an automated informing you that your preapplication screening answers were submitted and are pending review. Your responses will be reviewed for compliance by OEDIT. This review should be completed by the next business day following your submission of the prequalification application. Later, you should receive a second automated telling you that your pre-screen was approved and then you can then log back into the application portal to complete your full application. To access the pre-qualification application click here: ii. iii. iv. Initial Application - Qualified applicants may initially apply for an award at any point along the Early Stage commercialization timeline. The intent of the Initial Application is to provide enough information to a group of reviewers so that they can sufficiently evaluate the commercialization potential of a technology and the value of the proposed project in advancing the technology toward commercialization. Applicants should draft their Initial Applications with the assumption that the reviewers have an undergraduate/master s level education in both business and the relevant scientific discipline. It is recommended that applicants focus on what a technology does relevant to competing technologies, rather than providing a detailed explanation of its mechanism of action. Transition Request - In order to facilitate the development of technologies through commercialization phases, there is a streamlined application and review to move projects from earlier stages through later development stages. Applicants that have successfully completed milestones within Phase III, still meet program eligibility, and are pursuing later milestones may request additional funding through the Transition Request process. Total AIA awards shall not exceed the ESC cap. Amendments to milestones or other substance of a project requiring a contract change can also be submitted through the Transition Request process. These project proposals will be assigned by the Grant Manager to an industry specific Sub-Committee of the AI Review Committee for a detailed review. These requests will be presented and discussed at the AI Review Committee meeting and the committee will make a final recommendation to the Advanced Industry Director, who will have the final authority to approve a project s transition. Timing Initial Applications and Transition Requests may be submitted during open application windows and will be reviewed every quarter. Application rounds will Page 16 of 21

17 close on the 1 st day of the month of each calendar quarter (January, April, July and October), with the first applications due on October 1, Complete Initial Applications and Transition Requests submitted by midnight on the 1 st will be considered in that review cycle. For example, applications accepted October 1, will be reviewed in October and November, and the Strategic Oversight Board will vote on these applications in December. Applications will again be accepted January 1. v. Format vi. All Initial Applications and Transition Requests must be submitted using OEDIT s online submission system. Applicant must establish a log-in and is not required to complete the application in one sitting. All required fields must be completed. Incomplete applications will be rejected. Rejected Applications Rejected applications may be re-worked and resubmitted in the next grant cycle. There is no appeals process. E. Application Instructions In applying for this grant you are providing information to the State of Colorado. As the submitter, you have an obligation to carefully review all information provided to ensure it is accurate to the best of your knowledge and it does not contain any omissions, misrepresentations or factual errors. The reviewers of this application reserve the right to validate or check any information provided by the applicant and if errors, omissions or misrepresentations are found, to modify the responses to correct for these deficiencies in evaluating the application and/or cancel any grant awards based on such deficiencies. Deliberately providing factual errors, omissions or misleading information to the State of Colorado as part of this application may be subject to penalties and sanctions as allowable by law. i. Company Name and Contact Info This section is not scored, but insufficient answers will cause the application to be rejected. This section consists of identifying information on the applicant. Questions are selfexplanatory. Some questions will populate with data you ve already entered to complete the pre-qualification step. Q10. The Application Certification file is available on the OEDIT website, and must be completed and uploaded. Q11 and 13. Upload documents as requested. These verify the company s business structure. Page 17 of 21

18 ii. iii. iv. Q14. Upload a completed W-9. You may utilize the form available on the OEDIT website, or your own. Please include the additional 4 digits for the business zipcode. Q15. If applicable, upload a Certificate of Good Standing from the Colorado Secretary of State. Project Information This section is not scored, but insufficient answers will be rejected. This section identifies the AI sector, checks for eligibility, identifies the technology s stage of commercialization and milestones to be accomplished through the grant work. Stakeholder Collaboration This section is scored. It is important that these questions be answered. These help determine compliance with the statutes, and eligibility for preferences. OEDIT will review and confirm accuracy OEDIT may modify the applicants answer if they are not accurate for scoring purposes. Q38. If applicable, upload a letter from the Technology Transfer Office describing the collaboration and technology. Q39. Applicants that have completed or are in an accelerator, incubator or other entrepreneurial training program may receive favorable consideration. Some noted programs are Techstars, Rocky Mountain Innosphere, Colorado Cleantech Open, Fellows Institute, SBDC training programs, Rockies Venture Club Academy, and Galvanize. Q41. If applicable, upload a letter from the incubator or program under which the business has received guidance and training. Q44. If applicable, upload a letter from an investor. Strategy, Product, Technology This section is scored. Questions are self-explanatory. v. Business Plan, Grant, Financials This section is scored. Questions are self-explanatory Q64. Upload documents that verify the commitment of matching funds. These may be a commitment letter, or an award letter that may proceed funds being deposited in the applicants accounts. Page 18 of 21

19 vi. vii. Q66. In composing a project timeline, utilize the sample outline in the Resources section on the AIA webpage this should be customized to reflect the specifics of the proposal. Q71. Utilize the budget template in the Resources section on the AIA webpage this may be customized to reflect the specifics of the proposal and institutional accounting systems.. Q72. Upload business plans, pitch-decks or other materials that have already been created to promote your business. Q77. Upload the business financials. Company Management This section is scored. Questions are self-explanatory Q83. Upload CVs or resumes for key project and company personnel. Q89. Upload any letter(s) or recommendation from a business advisor. Benefits to Colorado This section is scored. Questions are self-explanatory Page 19 of 21

20 III. Infrastructure Grant Program (IG) Grant funding is used to accelerate commercialization and innovation of AI products and services by building capacity and workforce for the AI ecosystem. This program aligns private industry and research institutions to create public goods for the development of the advanced industries in Colorado. A. Project Scope Infrastructure Grants Projects may include manufacturing demonstration facilities, workforce training facilities or programs, or other services meeting a demonstrated need. Projects fill important gaps in the advanced industry ecosystem or supply chain and provide public goods that support advanced industry researchers and companies in commercializing products. Projects substantially increase alignment between private companies within an advanced industry and research institutions to accelerate commercialization and innovation in Colorado. i. OEDIT may issue Requests for Proposals (RFPs) based on: ii. B. Funding 1. existing or upcoming federal grant opportunities; 2. existing Advanced Industry (AI) strategic imperatives as set forth in the AI strategic plan; or 3. new strategic needs for a particular AI based on input or request from an AI industry trade association on behalf of the AI key industry network. Industry Trade Associations may make infrastructure requests directly to OEDIT on the following cycle: 1. Grant Cycle One: Bioscience, Energy 2. Grant Cycle Two: Infrastructure Engineering, Electronics 3. Grant Cycle Three: Advanced Manufacturing 4. Grant Cycle Four: Aerospace, Technology and Information i. Project ii. Awards of up to $500,000 may be made for a project. Strong preference will be given to projects that increase alignment and provide critical commercialization infrastructure to support more than one AI. Matching Funds The applicant must have dedicated money that is at least 2x the requested grant amount. In-kind contributions do not satisfy matching requirements. At the time of application, at a minimum, a letter of award or commitment is required. Prior to a grant being executed, the funds must be in an account. Page 20 of 21

21 iii. iv. Grant Maximum A project may receive grant awards up to the $500,000 maximum, unless the award cap is lifted as described herein. Use of Funds The expenditure of both grant and matching funds must comply with an approved project budget. Once an applicant has been notified of an award, they may begin spending matching funds. Grant funds may not be spent until a Grant Agreement has been executed (received final signature by the State Controller or designee). C. Eligibility i. Companies or organizations operating in Colorado and developing resources for Colorado, and responding to a Request for Proposals (RFPs) issued by OEDIT are eligible for these funds. Federal grant opportunities can arise at any time and if a particular AI benefits from a federal opportunity, it may not make an additional request during its scheduled cycle. ii. Preference is given to proposals that: 1. Accelerate economic growth in more than one advanced industry, or include more than one research institution or advanced industry stakeholder; 2. Originate from nonprofit research institutions or industry associations; 3. Focus on applied research and development, technology acceleration, or production-oriented or manufacturing-oriented facilities; or 4. Focus on workforce development that addresses the advanced industries workforce skills that are needed to facilitate commercialization of products or services. For more information or to apply for a grant, visit Colorado Office of Economic Development and International Trade 1625 Broadway, Suite 2700 Denver, CO FAX Page 21 of 21