SC Launch Grant Programs Qualifications and Processing Procedures Effective August 1, 2017

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1 SC Launch Grant Prgrams Qualificatins and Prcessing Prcedures Effective August 1, 2017 SCRA s SC Launch Prgram supprts entrepreneurs, increases technlgy cmmercializatin, and fsters early-stage cmpany develpment in Suth Carlina. The SC Launch Prgram prvides mentring, access t resurce partners, as well as grant and investment supprt t cmpanies in the Prgram that are clsely aligned with the fllwing industries: Advanced Materials/Manufacturing; Life Sciences; and Infrmatin Technlgy. Grant Prgrams Overview: Assistance in the frm f grant mnies is available t qualified Suth Carlina-based technlgy cmpanies using fur grant prgrams. SCRA Phase I award matching grants fr Small Business Innvatin Research (SBIR) and Small Business Technlgy Transfer (STTR) Grants Academic Start-up Assistance Prgram (ASAP) grants (frmerly University Start-up Assistance Prgram Grants) Prject Develpment Fund (PDF) Grants Acceleratin Grants (AG) Qualified entities are ffered an pprtunity t cmpete fr available funding based n merit and ptential fr success. SCRA limits the ttal amunt f all SCRA grant funds received by a cmpany during its lifetime t $150,000. The maximum allwable direct investments frm SC Launch, Inc. ver a cmpany s lifetime is $600,000. Therefre, in ttal, the cmbinatin f grant awards and direct investments made frm SCRA and SC Launch, Inc. is $750,000. The grantee is expressly frbidden t use r subcntract fr the use f labratry animals in any manner whatsever withut the express written apprval f an Institutinal Animal Care and Use Cmmittee (IACUC). SCRA will require evidence f IACUC apprval fr any prpsals describing the use f labratry animals, r Institutinal Review Bard (IRB) apprval fr any prpsals describing research invlving human subjects.

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3 Grant Descriptins 1. SBIR/STTR Matching Grants The SBIR/STTR Phase I Matching Grants are fr cmpanies which have received a written ntice f award fr an SBIR r STTR frm a federal agency. As the SC Launch grant apprval prcess has been refined, these Matching Grants are nw awarded thrugh tw cmpetitive review cycles per year. The review criteria belw are used t determine which applicatins will be apprved. Nte: The SBIR/STTR Phase I Matching Grant applies t federal agency Phase I awards nly. Qualificatins: The cmpany must be, r be eligible t becme, an SC Launch Client Cmpany Funding amunt: Individuals wrking utside f a cmpany are nt eligible. The cmpany must be registered t cnduct business in the State f Suth Carlina as authrized by the Office f the Secretary f State prir t award f the funds. SBIR/STTR grants will be matched, ne t ne with the agency award amunt, up t a limit f $50,000. A cmpany may receive ne Matching Grant per SCRA Fiscal Year (July 1 June 30) and a maximum f tw Phase I SBIR/STTR Matching Grants during its lifetime (maximum f $100,000). Use f funds: Funding t cmplete prjects crucial t psitining the cmpany t btain a Phase II SBIR/STTR. Supplemental funding t assist the cmpany in cmpleting the Phase I research activity, including certain csts nt allwed under the Phase I federal award (e.g., patent expenses, market research, equipment purchases, and business develpment effrts). The funds may nt be used fr lng-term cmmitments such as salaries and rents. Applicatin prcess: An nline, Matching Grant applicatin can be fund n the SCRA website Fill in applicatin fields, as required. The applicatin shuld include the fllwing elements: Use f Funds Statement Federal agency award letter Specific hypthesis/aims frm the funded grant submissin Descriptin f the benefits t Suth Carlina If available, a business plan and/r cmmercializatin plan Review prcedure: Applicatins will be reviewed bi-annually, in February and August. Fr Fiscal Year 18, applicatins are due by August 18 th fr the August review cycle and February 7 th fr the February review cycle. Qualified applicants will be invited t discuss their applicatins with the SC Launch Team and subsequently present t the Team (Including the SCRA Directr f Academic Prgrams).

4 Feedback and a final decisin will be prvided in writing t the applying cmpany within tw weeks f a presentatin. If an applicant is nt awarded funds during the first submissin cycle, they will be eligible t be cnsidered during the fllwing submissin cycle withut resubmitting. Review criteria: Ptential fr receiving a Phase II SBIR/STTR award Relevance f the SBIR/STTR prject t SC Launch key technlgy sectrs (Advanced Materials/Manufacturing; Life Sciences; and Infrmatin Technlgy) Clear pathway t a subsequent Acceleratin Grant and/r an SC Launch, Inc. investment Usage f funds that assists with accelerating the technlgy t cmmercializatin and securing Phase II funding Viable technlgy with substantiated cmmercial ptential Histry/status f the SC Launch Client Cmpany and engagement with SC Launch Recmmendatin f the SC Launch Reginal Manager and the Directr f Academic Prgrams Preference will be given t applicatins with cnnectivity t a public institutin f pst-secndary educatin in the State f Suth Carlina (either research cllabratins under the SBIR/STTR r advancement f academic intellectual prperty), with additinal weight being given t thse applicatins fr which the SBIR/STTR research is an area f research that is an institutinal pririty Funds distributin: 75% f the funds will be distributed upn the apprval f the grant match. 25% reserve will be held until a final federal agency reprt is submitted t SCRA. SCRA shuld receive a cpy f the final reprt within 30 days fllwing submissin f the reprt t the awarding agency. Grant funds will be distributed within ne mnth f apprval frm the SC Launch Team, and cmpletin f all vendr frms as well as the cuntersigned cntract frm the cmpany. The cmpany agrees t return all the awarded funds t SCRA if it leaves Suth Carlina within 12 mnths f the distributin f all Matching Funds.

5 2. Academic Start-up Assistance (ASAP) Grants Frmerly University Start-up Assistance Prgram (USAP) Grants ASAP Grants are available t academic institutin-spnsred, fr-prfit, early-stage, technlgy cmpanies. Qualificatins: The cmpany must be, r be eligible t becme, an SC Launch Client Cmpany Individuals wrking utside f a cmpany are nt eligible. The cmpany must be registered t cnduct business in the State f Suth Carlina as authrized by the Office f the Secretary f State prir t award f the funds. Funding amunt: $15,000 is the recmmended budget limit, but the cmpany may request and receive up t $25,000, the maximum allwable fr each cmpany during its lifetime. Use f funds: Supplemental funding t assist a cmpany in achieving ne r mre critical milestnes tward cmmercializatin that will serve as the fundatin fr pursuing fllw-n funding. The funds shuld nt be used fr lng-term cmmitments such as salaries and rents. Applicatin prcess: Dwnlad the ASAP Grant applicatin frm the SCRA website Fill in applicatin fields, as required. Submit yur cmpleted applicatin with all required attachments t the Technlgy Transfer Office (TTO), r equivalent rganizatin, f yur academic institutin fr assessment: Attachment A-Prject Summary Attachment B-Market Research Summary Attachment C-Use f Funds Statement Applicatins shuld include the fllwing elements: A descriptin f benefits t Suth Carlina A business and/r cmmercializatin plan, if available The TTO will cmplete the final submissin prcess, in additin t prviding a Letter f Supprt frm the academic institutin t apply@scra.rg. Review prcedure: Applicatins will be reviewed mnthly. Qualified applicants will be invited t discuss their applicatins with the SC Launch Team and subsequently present t the Team. Feedback and a final decisin will be prvided in writing t the applying cmpany within tw weeks f a review. Applicatins will be cnsidered n a rlling basis. If the applicant is nt awarded funds during previus mnths review, they are still eligible t be cnsidered during the fllwing mnths reviews. Review criteria: Relevance f the ASAP prject t SC Launch key technlgy sectrs (Advanced Materials/Manufacturing; Life Sciences; and/r Infrmatin Technlgy) Clear pathway t a subsequent Acceleratin Grant and/r an SC Launch, Inc. investment

6 Usage f funds that assists with accelerating the technlgy t cmmercializatin Viable technlgy with substantiated cmmercial ptential Histry/status f the SC Launch Client Cmpany and engagement with SC Launch Recmmendatin f the SC Launch Reginal Manager and the Directr f Academic Prgrams Funds distributin: SCRA will distribute Grant mnies in a staged-gate manner (with a maximum f tw tranches) crrespnding with the cmpany-defined (as agreed by the relevant Reginal Manager) milestnes. The secnd distributin f funds will take place under the cnditin that the milestne(s) assciated with the first distributin is met. All milestnes shuld be achieved within ne year f prject funding. Grant funds will be distributed within ne mnth f apprval frm the SC Launch Team and cmpletin f all vendr frms as well as the cuntersigned cntract frm the cmpany. The cmpany agrees t return all the awarded funds t SCRA if it leaves Suth Carlina within 12 mnths f the distributin f all Grant funds.

7 3. Prject Develpment Fund (PDF) Grants The PDF Grants apply t Suth Carlina fr-prfit, early-stage, technlgy-based cmmercial entities nt spnsred by an academic institutin. Qualificatins: The cmpany must be, r be eligible t becme, an SC Launch Client Cmpany Individuals wrking alne are nt eligible. The cmpany must be registered t cnduct business in the State f Suth Carlina as authrized by the Office f the Secretary f State prir t award f the funds. Funding amunt: $15,000 is the recmmended budget limit, but the cmpany may request and receive up t $25,000, the maximum allwable fr each cmpany during its lifetime. Use f funds: Supplemental funding t assist the cmpany in achieving ne r mre critical milestnes t cmmercializatin that will serve as the fundatin fr pursuing fllwn funding. The funds shuld nt be used fr lng-term cmmitments such as salaries and rents. Applicatin prcess: Dwnlad the PDF Grant applicatin frm the SCRA website Fill in applicatin fields, as required. The applicatin shuld include the fllwing elements: Use f Funds Statement Descriptin f the benefits t Suth Carlina Business plan and/r cmmercializatin plan, if available Review prcedure: Applicatins will be reviewed mnthly. Qualified applicants will be invited t discuss their applicatin with the SC Launch Team and subsequently present t the Team. Feedback and a final decisin will be prvided in writing t the applying cmpany within tw weeks f a presentatin. Applicatins will be cnsidered n a rlling basis. If the applicant is nt awarded funds during previus mnths review, they are still eligible t be cnsidered during the fllwing mnths reviews. Review criteria: Relevance f the PDF prject t SC Launch key technlgy sectrs (Advanced Materials/Manufacturing; Life Sciences; and/r Infrmatin Technlgy) Clear pathway t a subsequent Acceleratin Grant and/r an SC Launch, Inc. investment Usage f funds that assist with accelerating the technlgy t cmmercializatin Viability f the technlgy with substantiated cmmercial ptential Histry/status f the SC Launch Client Cmpany and engagement with SC Launch Recmmendatin f the SC Launch Reginal Manager and the Directr f Industry Prgrams Funds distributin: SCRA will distribute Grant mnies in a stage-gate manner (with a maximum f tw

8 tranches) crrespnding with the cmpany-defined (as agreed by the relevant Reginal Manager) milestnes. The secnd distributin f funds will take place under the cnditin that the milestne(s) assciated with the first distributin is met. All milestnes shuld be achieved within ne year f prject funding. Grant funds will be distributed within ne mnth f apprval frm the SC Launch Team, and cmpletin f all vendr frms as well as the cuntersigned cntract frm the cmpany. The cmpany agrees t return all the awarded funds t SCRA if it leaves Suth Carlina within 12 mnths f the distributin f all Grant funds.

9 4. Acceleratin Grants Acceleratin Grants are cmpetitively awarded t Suth Carlina-based, fr-prfit, technlgy cmpanies that are prgressing well in early-stage develpment. This funding will enable qualifying, selected cmpanies t make further prgress tward cmmercializatin and thereby better psitin the cmpany t apply fr a direct investment frm SC Launch, Inc. Qualificatins: The cmpany must be, r be eligible t becme, an SC Launch Client Cmpany Sle prprietrships r individuals wrking alne are nt eligible. The cmpany must be either incrprated in Suth Carlina r registered t cnduct business as a freign crpratin in the State f Suth Carlina as authrized by the Office f the Secretary f State. Funding amunt: A cmpany may request a ne-time award f up t $50,000. Cmpanies demnstrating the ability t prvide matching funds will receive a preference. Use f funds: Cmpanies are encuraged t emply Acceleratin Grant funds t cntinue technlgy and cmpany business develpment as well as t psitin the cmpany t receive additinal grants and investments Applicatin prcess: The Acceleratin Grant Applicatin can be fund belw r n the SCRA website: Submit cmpleted applicatin with required attachments t apply@scra.rg Attachment A-Cmpany Summary Attachment B-Market Research Summary Attachment C-Use f Funds Statement Applicatins shuld include the fllwing elements A descriptin f benefits t Suth Carlina A business and/r cmmercializatin plan, if available Review prcedure: Qualified applicants will be invited t discuss their intentins with the SC Launch Team. Results f the review and a final decisin will be prvided in writing t the applying cmpany within tw weeks f the cmpany s presentatin t the SCL Team. Review criteria: Relevance f the Acceleratin prject t SC Launch key technlgy sectrs (Advanced Materials/Manufacturing; Life Sciences; and/r Infrmatin Technlgy) Clear pathway t a subsequent SC Launch, Inc. investment Usage f funds that assist with accelerating the technlgy t cmmercializatin r expanding market psitin Viability f the technlgy with substantiated cmmercial ptential Histry/status f the SC Launch Client Cmpany and engagement with SC Launch Recmmendatin f the SC Launch Reginal Manager and the Directr f Entrepreneurial Prgrams The cmpany shuld be able t demnstrate achievement tward critical cmmercializatin milestnes.

10 The cmpany must pssess a cmpetitive value prpsitin and a cmpelling g-tmarket strategy. The cmpany must demnstrate that it can reach a scale that wuld create a substantial number f jbs in SC and receive fllw-n equity funding. The funders must have an appreciable amunt f their wn mney invested in the cmpany. The funders must have demnstrated an intentin t devting 100% f their time t running the cmpany in the freseeable future r finding the right peple t d s. The management team f the cmpany must demnstrate their intentin t use the SC Launch Resurce Partner Prgram and mentring frm SCRA staff. Funds distributin: SCRA will distribute Grant mnies in a staged-gate manner (with a maximum f tw tranches) crrespnding with the cmpany-defined (as agreed by the relevant Reginal Manager) milestnes. The secnd distributin f funds will take place under the cnditin that the milestne(s) assciated with the first distributin is met. All milestnes shuld be achieved within ne year f prject funding. Questins fr SC Launch? Link t Team: Julia Lintn Prgram Administratr Julia.Lintn@scra.rg

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