Ohio Third Frontier Success

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Ohio Third FrontierSuccess Pre-Seed Fund
InitiativeFiscal Year 2008Request for
ProposalsBidders ConferenceApril 29, 2008
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Agenda

• Welcome and Introductions
• Ohios Third Frontier
• Commercialization Framework
• Third Frontier Success Pre-Seed Fund Initiative
  (TFSPFI)
• TFSPFI Q A
• Closing Remarks

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Ohios Third Frontier

• Vision
• 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.

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Ohios Third Frontier

• Background
• The Ohios Third Frontier was initiated in
  February 2002 and, with a commitment of 1.6
  billion, is the state's largest-ever economic
  development initiative.
• Ohios investment has leveraged 2.4 billion in
  additional investments from the private sector
  and federal government.
• Program investments have helped to create 370 new
  companies, and more than 5,500 new jobs.

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Ohios Third Frontier

• Objectives
• Increase the quantity of high quality research in
  Ohio.
• Expand the availability of investment capital
  needed to form and grow new companies
• Grow and nurture entrepreneurial management
  talent supported by organized systems of services
  and networking
• Expand the availability of capital and assistance
  to support product innovation in established
  companies
• Attract new-to-Ohio company activity in specific
  technology clusters.

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Ohios Third Frontier

• Focus Areas
• Based on a 2002 study by Battelle, Ohios Third
  Frontier adopted five technology focus areas
• Advanced Materials
• Biosciences
• Information Technology
• Instruments, Controls, Electronics
• Power and Propulsion

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Ohios Third Frontier

• Commercialization Framework
• TFSPSFI

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Commercialization Framework

• What is the Framework?
• The Framework is a guide for the thoughtful
  analysis of technology commercialization
  initiatives (and related investments) at each
  phase of commercialization, from idea generation
  to commercial success.

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Commercialization Framework

• The Commercialization Framework consists of three
  major components
• A description of five phases of
  commercialization, including an overview of two
  categories of activities and required proof
  within each phase (i) the development of the
  technology, and (ii) the development of the
  commercial concept.
• A series of steps (the Analytical Framework) to
  help improve the probability of success or
  reduce the unproductive use of scarce resources.
• A system of metrics (the ABC metrics) designed
  to provide objective interim measures of
  commercial progress well before the project can
  achieve traditional metrics (e.g. customers,
  revenues, profits, etc.).

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TFPSFI Funding by Commercialization Phase
TFPSFI
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ABC Metrics Framework

• A Metrics - Synonymous with attracting the
  resources required to engage in the next phase of
  commercialization and can include the acquisition
  of resources required to continue the generation
  of proof within the current phase.
• B Metrics - Tangible evidence that a project is
  on the path to achieving A Metrics. Tangible
  evidence of a B Metric is the commitment of
  resources by the resource provider to evaluate
  the project for funding.
• C Metrics - Measure activities and are the
  equivalent of project milestones. These
  activities are often critically important, but do
  not represent evidence of progress toward the
  goal of commercial success.

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Ohio Third Frontier Success Pre-Seed Fund
Initiative

• Fiscal Year
• 2008

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Ohio Third Frontier

• Accomplishments
• Nearly 650 million has been invested since 2003
  which has leveraged 2.4 billion in additional
  investments from the private sector and federal
  government.
• Ohio Third Frontier investments have resulted in
  the creation and capitalization of 370 companies
  and the creation of more than 5,500 new jobs.
• 91.5 million has been invested in companies
  through the Ohio Technology Investment Tax Credit
  (TITC), which provides a tax credit for taxpayers
  who invest in small, Ohio-based research and
  development and technology companies.

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Program Purpose

• The Success and Pre-Seed Funding Initiative RFP
  seeks applications for grants to establish New
  Pre-Seed Funds, provide additional capital to
  Existing Pre-Seed Funds, and fund the successful
  activities of Entrepreneurial Assistance
  Organizations.

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Program Objectives

• To provide capital to New Pre-Seed Funds for
  unmet investment capital and entrepreneurial
  assistance needs.
• To provide capital to Existing Pre-Seed Funds to
  enable them to raise new private monies and build
  on their proven successes in supplying investment
  capital.
• To provide funding to existing Entrepreneurial
  Assistance Organizations to build on their proven
  successes in delivering entrepreneurial
  assistance services.

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Eligibility

• Grant applications must focus on investment and
  service opportunities in Advanced Materials,
  Biosciences, Information Technology, Instruments,
  Controls and Electronics, Power and Propulsion.
• Lead Applicant must be an organization
  (for-profit or not-for-profit) based in Ohio or
  with a principal place of business in Ohio.
  Out-of-state for-profit companies must pledge to
  locate a principle place of business in Ohio as a
  pre-condition to award.
• A substantial portion of the project activity and
  the benefit from the project must occur in Ohio.

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RFP Changes

• The 2008 Third Frontier Success Pre-Seed Fund
  Initiative differs in a number of material ways
  from the prior Pre-Seed Fund Initiative RFP and
  should be read in its entirety to identify those
  changes.

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Significant RFP Changes

• This RFP recognizes three types of Lead
  Applicants
• New Pre-Seed Fund
• Existing Pre-Seed Fund
• Entrepreneurial Assistance Organization (EAO)
• Complete definitions of these Lead Applicant
  types can be found in Appendix A of the RFP.

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Funding

• ODOD anticipates awarding up to 6 million
  through the FY08 TFSPSFI.
• New Pre-Seed Funds can request 500,000 -
  1 million.
• Existing Pre-Seed Funds can request 1 million -
  2 million.
• Entrepreneurial Assistance Organizations can
  request 1 million - 2 million.

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Funding

• Applicants seeking Pre-Seed Grant funds cannot
  use more than 20 of the Grant Funds for Due
  Diligence or Enhanced Management Services.
• Cost Share is 12 for a New Pre-Seed Fund and 11
  for an Existing Pre-Seed Fund or an EAO. The Cost
  Share may be in the form of a Current Commitment
  or a Future Commitment.
• Resources that have already been designated as
  Cost Share for some other award cannot be used as
  Cost Share for an award under this program.

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Review Process

• Proposals are submitted to an administrative
  review and screened for compliance with RFP
  requirements.
• Passing Proposals are sent to external reviewers
  to read, evaluate, and rank the Proposals on
  their merits.
• External reviewers create a rank-ordered list of
  Proposals recommended for funding and brief the
  ODOD staff about each Proposal.
• A rank-ordered list of the most competitive
  Proposals will be prepared by the ODOD and
  forwarded to the TFC.

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Evaluation

• Proposals that contain specific plans, current
  commitments, defined and documented
  collaborations, identified management, and
  objective evidence of success will receive higher
  scores during the evaluation process.

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Key Evaluation Criteria

• Compliance with the Requirements the extent to
  which the Lead Applicant meets or exceeds the
  basic requirements of the RFP.
• The Opportunity the need, defined by the Lead
  Applicant, for a New Pre-Seed Fund or additional
  funding for an Existing Pre-Seed Fund or an EAO.
• Operations the extent to which the Lead
  Applicants budget, financial commitments,
  management team, processes, and approach are
  well-suited to the stated objectives of the Fund
  or EAO.
• Success and Track Record a proven track record
  of applying State funds to generate A Metrics or
  of successful investing in opportunities in the
  Imaging, Incubating, or Demonstrating phases of
  commercialization.

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Timeline

• RFP Released April 17, 2008
• Letters of Intent due by 200 PM May 8, 2008
• Written Questions through May 15, 2008
• Proposals due by 200 PM June 3, 2008
• Review and Award approximately July 29, 2008

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Policy Administrative Questions

• All questions must be submitted via email
• Email 2008_TFSPSFI_RFP_at_odod.state.oh.us
• Frequently asked questions will be posted on the
  Third Frontier web site www.thirdfrontier.com

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Questions?