Wexford Science + Technology. Sponsor Steve Hanssen Vice President

Transcription

1 Wexford Science + Technology Sponsor Steve Hanssen Vice President

2 @ The BioPark Maryland Technology Development Corporation Presenter Stephen Auvil Vice President - Technology Transfer & Commercialization (TEDCO)

3 TEDCO Seed Funding Programs for Technology Development Stephen Auvil Vice President - Technology Transfer & Commercialization [email protected]

4 Specialized Economic Development Mission v Leverage regional assets to build the technology-based economy in Maryland v Technology transfer focus v Mechanisms: Outreach Early-stage technology transfer and commercialization funding programs Incubator support Business assistance programs

5 Program Targets v Universities v Federal laboratories v Early-stage companies v Entrepreneurs v Investors Angels Corporations

6 Traditional Technology Funding Basic Research Public Laboratory Proof of Concept Company Feasibility Testing Product Design Product/ Service Development Project $ $ $ SBIR Angel Investors $ Public Funding Valley of Death Venture Capital Project Capital Funds

7 Basic Research Public Laboratory Proof of Concept TEDCO s Programs Company Feasibility Testing Product Design Product/ Service Development Project University MTTCF WCLF Technology Power of Ten JTTI $ Development $ Fund (UTDF) J&J Public Funding $ $ TechStart $ Rural Business Innovation Initiative (RBI 2 ) Maryland Stem Cell Research Fund $ Project Capital Funds

8 University Technology Development Fund (UTDF) v Supports pre-commercial research on university technology with commercial potential v All institutions of higher education in Maryland are eligible v University faculty or staff apply in cooperation with their technology transfer office v Maximum award: $50,000

9 TechStart Program v Increase the number of Maryland start-up companies v Funds to be used for a commercialization analysis v All federal labs with a TEDCO agreement and university labs in the State are eligible v Team requirement experienced entrepreneur, inventor, technology manager v Maximum award: $15,000

10 Maryland Technology Transfer & Commercialization Fund (MTTCF) v Facilitate the transfer and commercialization of technology created at Maryland academic institutions, federal laboratories, or Maryland technology incubator companies v Maximum award: $75,000 Reimbursable grant Requires 50% company match v Approximately awards per year

11 MTTCF Success Criteria v Achieving technical/budget/schedule milestones v Finding continuation funding v Statistics as of 7/1/2010: 144 projects completed 182 projects funded (approx. 50% funding) $8.8 million in TEDCO support $354.4 million in follow-on funding

12 MTTCF Eligibility I v Recipient must be a Maryland business Fewer than 16 employees, OR Academic/Federal lab spin-out less than five years old v Recipient must be early-stage No revenue, OR No venture investment

13 MTTCF Eligibility II v Technology must be from: Any research university or college in Maryland, Any federal research lab covered by TEDCO agreements, OR Any NASA center OR v Company must be in one of the qualified business incubators in Maryland

14 MTTCF Application & Review Process v Proposal submitted through TEDCO Funds On-line application system - monthly Proposal guidelines/investment agreement available Request a new user account for company authorized official v Review process requires two month minimum Business & technical reviews Site visit v A formal closing possible within 90 days

15 MTTCF Agreement Terms v Cost reimbursement award model Monthly with project report and invoice Final payment requires final project report and closeout site visit v Requires annual reporting for 5 years v Reimbursement of Award Percentage of revenues for 5 years Maximum payback is 2x Early payback option

16 MTTCF Reporting Requirements v Project status reports Monthly during the project with invoices Final project report, site visit, final payment v Quarterly revenue reports Calendar quarters beginning with closing Annual financial report in April Financial reporting ends when payback is complete v Annual economic impact reports

17 Johnson & Johnson Joint Investment Program v Transformational medical technology v Matches with the interests of J&J v Maximum award is $150,000 MTTCF award process v J&J gets a first look at technologies v No additional strings attached

18 Joint Technology Transfer Initiative (JTTI) v Funding to support technology development and commercialization: To meet the specific needs of DHS and USAMRMC (spin-in) To commercialize DHS or USAMRMC technologies (spin-out) v Maximum award: $75,000 Executive panel decision Grant with 50% match requirement

19 Working Capital Loan Fund v Working capital loans of $15,000 - $50,000 v Terms are typically 3 5 years v Interest rates are at, or below, the market rate v Program targets incubation-stage companies v Eligibility requirements: Located in Maryland Early-stage Technology company Beyond the development stage ready for first product launch

20 Maryland Stem Cell Research Fund v The MSCRF was established by the Maryland Stem Cell Research Act of 2006 v Three types of grants: Investigator-Initiated Grant - Up to $1M per project for 5 years Exploratory Grant - Up to$100k per project for 2 years Postdoctoral Fellow Support - Up to $55K per year for post docs to conduct basic or translational research

21 Rural Business Innovation Initiative (RBI 2 ) v Business assistance for companies in rural Maryland Eastern shore, Western Maryland v Business mentors work with companies Business & market strategy Financial Analysis IP assessment Prototype development v Small grants available for special projects

22 RBI 2 Eligibility Criteria v Developing new technology or using technology to create new business v Fewer than 16 employees v Annual revenues less than $1M per year v Age of company is not considered

23 Portfolio Company Benefits v Access to business & technical assistance v Access to VCs, angel investors, and strategic partners v Publicity through TEDCO press releases v Recognition and reputation of TEDCO s programs v Workshops for TEDCO funded companies v TEDCO networks

24 Navigating TEDCO s Website

25 Thank you! Stephen Auvil Vice President Technology Transfer & Commercialization

26 @ The BioPark Maryland Biotechnology Center Presenter Chuck Montague, PhD Program Manager, Biotechnology Development Programs

27 Maryland Biotechnology Industry B mi i i m Bm c m Bm f m B c a B B n

28 Maryland Industry Subsectors 4% 24% CRO/CSO & CMO Therapeutics Medical Devices 19% 6% 47% Research Tools & Diagnositcs AgBio & Nutrition

29 LEVERAGING RESEARCH ASSETS FEDERAL GOVERNMENT ACADEMIC INSTITUTIONS NIH NIST FDA USDA BARC USAMRIID WALTER REED $12.2 B (USD) R&D Obligations PRIVATE SECTOR SUCCESS $1.7 B (USD) Federal R&D Grants & Contracts JOHNS HOPKINS UMCP UMB UMBC Creating success through partnerships STATE GOVERNMENT INVESTMENT PROGRAMS, TAX CREDITS, LOANS, STRATEGIC GUIDANCE

30 ...TO REVENUES

31 Biotechnology Center Programs BioEntrepreneur Resources Program Biotechnology Development Program Workforce Development Federal Connec;on

32 BioEntrepreneur Resource Program Access to resources in Bal8more and Rockville offices: ü Business plan development ü Capital forma;on strategy ü Market intelligence ü Science & industry trends ü IP & trademark protec;on ü Facili;es & incubator space ü Public programs of assistance ü Grant Programs

33 BioEntrepreneur Resource Program Access to resources in Bal8more and Rockville offices: ü Business plan development ü Capital forma;on strategy ü Market intelligence ü Science & industry trends ü IP & trademark protec;on ü Facili;es & incubator space ü Public programs of assistance ü Grant Programs

34 Biotechnology Development Program: $200,000 Awards Target projects from companies or ins8tutes that drive product development efforts and leverage funding opportuni8es. Commercializa8on Transla8onal Research Ins8tu8onal Shared Resource Facility

35 Business Databases Datamonitor MedTRACK MedTRACK Venture Finance DeloiQe ReCap Frost and Sullivan Healthcare Research Discovery Logic Synapse Hoovers LexisNexis

36 State Funding Programs TEDCO MTTCF, UTDF MD Industrial Partnership (MIPS) MD Biotechnology Center Maryland Venture Fund All are compe88ve. All require applica8ons.

37 Maryland Biotechnology Investment Tax Credit Program $24 M Awarded in ($6M/yr) >$50 M Invested in ~ 40 Bioscience Companies 2011: Biotech Tax Credit increased to $8M ~200 Investor Applica8ons Each Year One- half are Maryland- based Investors 23 other States and 4 Countries Represented

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39 Maryland Biotechnology Investment Tax Credit Program Investments of $25K - $500K 50% REFUNDABLE Tax Credit In a Qualified MD Biotechnology Company July 1 funds become available 30 days to make the investment 15 days to no8fy DBED There MAY s8ll be credit lel

40 Major Annapolis Ini8a8ves Biotech Investor Tax Credit: $8M R&D Tax Credit: $6M Stem Cell Funding: $10.4M InvestMaryland: $100M Insurance Company Incen8ves Not solely for bio companies

41 June 27-30, 2011 Washington DC

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44 INFORMATION Chuck Montague Manager, Biotechnology Development Program Maryland Biotechnology Center

45 @ The BioPark Maryland Department of Business & Economic Development Brian Castleberry Manager - Science and Healthcare Team Office of Business Development

46 PRESENTATION OBJECTIVES Describe the Division of Business and Enterprise Development and its operating Divisions. Describe the coordinating and facilitating role of the Office of Business Development. Describe the tools and resources available to Maryland businesses.

47 MISSION STATEMENT THE DIVISION OF BUSINESS AND ENTERPRISE DEVELOPMENT PROMOTES MARYLAND S ECONOMIC HEALTH BY CREATING, ATTRACTING,RETAINING AND EXPANDING JOBS IN THE STATE, WHILE POSITIONING MARYLAND AS A BUSINESS-FRIENDLY ENVIRONMENT TO IN-STATE COMPANIES, AND NATIONAL AND INTERNATIONAL BUSINESS.

48 Division of Business and Enterprise Development: Operating Divisions Office of Business Development Business retention and expansion in Baltimore/Washington Corridor. Office of International Investment and Trade - Business attraction nationally & internationally. Office of Business Services Small business assistance. Business retention and expansion in rural Maryland. Office of Finance Programs Financing programs administration. Office of Military and Federal Affairs Coordination of federal and military initiatives. 48

49 Office of Business Development The eyes and ears and feet on the street for the Department. Coordinates the linkage between state, county and local resources and Maryland businesses. Site Location Expertise. Encourages and supports the expansion and retention of Maryland companies through performance based financial incentives (i.e. job creation and CapEx). ROI-Based Workforce Development Strategic Relations with Industry and Government Leaders. Entrepreneur 49 Fast track (Burn the Red Tape)

50 Office of Business Development Tools and Resources Workforce Recruitment Workforce Training Programs Financing Programs Tax Incentive Programs Technical Assistance Technology Programs 50

51 Workforce Recruitment Business Development Reps work with the County to provide access to Department of Labor, Licensing and Regulations resources: Maryland s Workforce Exchange (free Internet based job posting service for job seekers and employers). Logistical coordination for conduct of Job Fairs Advertising Applicant pre-screening 51

52 The Partnership for Workforce Quality (PWQ) Training funds provided to Maryland businesses on a matching basis for skills upgrade of Maryland employees. For small and mid-sized biotech, manufacturing and technology companies Skilled training of existing workers for new technologies and production processes, improved employee productivity and increased industry employment stability 52

53 PWQ 53 Training costs reimbursed up to 50%. Grants made directly to companies for customized training. Training providers can include: Maryland community colleges Four-year colleges and universities Private consultants Equipment and product manufacturers and vendors In-house or corporate instructors.

54 Finance Programs Leverage financing from the private sector (Gap Fillers) Direct financing (Loans, Contract Financing,etc) Loan Guarantees & Credit Enhancement Tax Exempt and Taxable-Revenue Bonds Equity Investment 54

55 Maryland Venture Funds Challenge Investment Program Seed stage investment Initial investment of $50,000; maximum $150,000 Additional investments are milestone driven Requires a 1:1 co-investment match by sophisticated investor Contingent royalty repayment agreement 55

56 56 Maryland Venture Funds Enterprise Investment Fund Early stage investment $150,000 $500,000 Equity investment Preferred Stock 3-to-1 match with institutional investors Must stay in Maryland 5 years or else repay 110% or fair market value whichever is higher MVF has invested over $45 million since 1994 in more than 175 companies.

57 Job Creation Tax Credit (JCTC) Provides tax credits to businesses that create new jobs in certain industry sectors. Create 60 new jobs within 24 months, or create 25 jobs in a Priority Funding Area (PFA) Income Tax Credit of up to $1000 per job Credit up to $1500 per job in revitalization areas 57

58 One Maryland Tax Credit Dorchester Targeted to 5 counties & Baltimore City 58 $5 million for eligible project costs $500,000 for eligible startup costs

59 One Maryland Tax Credit Create at least 25 jobs within a 24 month period Project Costs (up to $5 million) Acquisition (Including land & buildings) Construction, Equipment installation Start-up Costs (up to $500,000) Moving Costs to MD (from outside state) Equipment for ordinary business functions (computers, furniture, office equipment) 59

60 Maryland Enterprise Zone Program For job creation and/or investments made in the designated enterprise zones: Income tax credits: $1000 to $6000 ($ 6k for economically disadvantaged employees) per job created. One time credit. Real property tax credits: Ten year credit against local real property taxes on a portion of property improvements. Credit is 80% first 5 years and decreases 10% annually to 30% in the 10 th and last 60 year.

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62 Research and Development Tax Credit Basic R&D Tax Credit 3% of eligible R&D expenses that do not exceed the firm s average R&D expenses over the last four years. Growth R&D Tax Credit 10 % of eligible R&D expenses that exceed the firm s average R&D expenses over the last four years. However, if the total amount of credits claimed by all firms exceeds $3 million, then the credits will be prorated. 62

63 DBED s Export Assistance Assist in identifying international business opportunities for first-time to experienced exporters. Reduce out-of-pocket costs. Identify potential partners, customers, and competitors in your target markets. Understand important foreign regulations. Market and promote products overseas. 63

64 MARYLAND S GLOBAL REACH The state maintains 13 foreign offices in 12 countries

65 65 DBED s Export Assistance Maryland s Representative Program Provides a sales and marketing presence in China and Taiwan. Service includes: Answering of phones in native language Hosting meetings Participating in tradeshows Conducting market research Facilitating travel Maintaining routine contacts Monitoring the effectiveness of marketing efforts Providing trade leads

66 Maryland Industrial Training Partnerships (MIPS) Matching funds for collaborative R&D projects between companies and the University System of Maryland faculty. Will match 25 percent to 90 percent (up to $200,000) of university project costs. HOORAY FOR GLIKNIK AND FYDOR BIO!!! Technology Programs 66

67 MIPS Through MIPS, companies can: Leverage R&D dollars through cost-effective research; Gain access to world-class researchers and facilities; Select research capabilities to meet specific requirements; Engage with top-notch student researchers who can become valuable, experienced future employees. Administered by the Maryland Technology Enterprise Institute (MTECH) Technology Programs 67

68 CONCLUSION The Office of Business Development is your one-stop source to access a multitude of programs and resources to help your business grow.

69 RESOURCES Maryland Department of Business and Economic Development Services Include: Building and site location assistance Finance programs, tax credits and training grants Business advocacy and consulting Technology Transfer Foreign Direct Investment Export consulting and marketing Tradeshow and conference partnership

70 STAY CONNECTED Visit ChooseMaryland.org for: Demographic and comparison data Business licensing information Business news and newsmakers Economic and employment stats Centralized event calendar

71 Further Details at: Contact: Brian Castleberry Program Manager Science and Healthcare 71

72 @ The BioPark Clifton Gunderson LLP Patricia A.C. Marshall, CPA Senior Tax Manager

73 Benefits for Biotechs Tax Credits for Biotechs December 1, 2010

74 Federal Credits of Interest to Biotech R&D Credit Section 41 Waiting on extension Therapeutic Discovery Project Credit Section 48D Funds are exhausted

75 Other Potential Credits & Benefits Federal HIRE Act credits and rebates 2010 / 2011 General Criteria: 1) 60 days unemployed (rebate), 2) Employed for 52 weeks (credit) Maryland Job Creation & Recovery Tax Credit 2010 only Funds still available for eligible 2010 hires (generally, for hires who were 6 months unemployed) State website allows pre-approval of eligible hires

76 Other Potential Credits & Benefits Other Credits & Incentives to Consider Federal Sec gain exclusion ( 10 only) Maryland R&D Enterprise Zones & Focus Areas Recommended to contact Baltimore Development Corp for Baltimore City companies Employment Credits Maryland Job Creation Credit Sales and property tax incentives (state/local)

77 Tips from the Pros Know (All) the Rules Who and what qualifies Deadlines for applications Deadlines for returns and amendments Pre-approval Application Process Batten down the hatches Cost-Benefit Analysis Does this make business sense for you and your company?

78 Tips from the Pros If you re then you should consider credits Doing massive hiring of unemployed Relocating to Maryland Starting a new business Hiring certain classes of individuals Located in an area of focus Making large equipment purchases Considering green investment Make a Good Business Decision

79 Resources (Maryland Income Tax Credits) (Maryland Sales Tax Exemptions) (Maryland R&D / Production Business Personal Property Exemption) (Federal Work Opportunity Tax Credit) (Baltimore Empowerment Zone website) (Federal Empowerment Zone / HUD Website) (A Guide to Business Tax Credits)

80 Thank You! Contact Information: Pat Marshall, CPA Timonium, Maryland office

81 @ The BioPark Ravgen Guest Speaker Ravinder Dhallan, MD/PhD, MBA Chairman and Chief Executive Officer