Proof of Concept and Matching Grants

Transcription

1 Proof of Concept and Matching Grants July 16, 2014

2 Overview of Presentation * What LSDF is and what we re trying to achieve * Definition of Proof of Concept, Matching, Project, and Program * Eligible applicants * Review and award process * Q and A (or ask during presentation)

3 Background and Mission * Provide grants for research and development and commercialization-related initiatives in Washington state to improve health and health care, stimulate economic activity, create and retain jobs, and promote life sciences competitiveness * Washington State Authority created by legislature and signed into law in 2005 first grants made in 2007 * Funded by tobacco settlement strategic contribution ( bonus ) payments

4 ROI: How Will this Research Benefit Washington State? * Health: Improve diagnosis, treatment, prevention, and management of significant human health and health care problems in Washington state Increase efficiencies in health care and health-care systems * Economic: Enhance commercialization of research outcomes Start new companies with the prospect for new job creation Attract immediate and follow-on grant/investment funding Decrease state expenditures for health care * Competitiveness Keep Washington s life sciences sector vital

5 Highlights to Date * 91 grants $99M committed/$79m reimbursed * Direct economic impact = $549M or 7X reimbursements >$481M follow-on funding $67M health-care cost savings 2 products on the market for WA companies * >30 start-up companies formed or expanded in WA

6 Changes for * Removed limit on total number of pre-proposals per cycle Removed interview for pre-proposals Increased executive summary to two pages * For-profits: Defined substantial investment as >$500K * Non-profits: Increased emphasis on commercialization partner/coordinator collaboration in application development * New Matching Grants competition Two types: Project and Program Both require CASH match at grant initiation At least 1:1 for Projects (one dollar for every LSDF dollar) At least 1:3 for Programs (three dollars for every LSDF dollar) Pre-proposals require LSDF pre-approval for submission

7 What does Proof of Concept mean? Proof of Concept grants support highly targeted research and development activities to reduce commercialization risk and assist technologies and organizations in crossing the valley of death $250,000 maximum per award Up to $4.5M available; LSDF intends to award up to $1.5M in each of three award cycles The technical/business plan may differ depending on LSDF s goals for the applicant: Non-profits: moving concepts and technologies to industry For-profits: facilitating first substantial equity investment

8 What does Matching mean? Matching grants ( Project and Program ) support work that is immediately leveraged by other funds. Potential applicants must discuss their idea with LSDF staff to determine eligibility to submit a pre-proposal. * The match must be in cash committed at the beginning of the LSDF funding period (<90 days after award) * Project grants require a 1:1 match; Program grants require a 1:3 match * The funding partners, including LSDF, are committing to the same proposal. The funds do not simply arrive at the same time, without any connection.

9 What s a Project? A Project is similar to a Proof of Concept grant, typically starting at the same stage of commercialization, but continuing beyond where Proof of Concept work would end. * $500K maximum request from LSDF * Up to $1.5M allocated for Projects * 1:1 cash match of LSDF funds * The funding partners have considered and are funding the same Project

10 Why would I apply for a Project vs. a Proof of Concept grant? * Your product/service needs more work than can be supported through a Proof of Concept grant in order to attract equity funding * Your work is, however, sufficiently de-risked that there is financial support from others * You can get more money from LSDF * You cannot propose the same idea (product/service) twice, i.e., simultaneously submit both a Project and a Proof of Concept for funding

11 What s a Program? A Program is a large-scale initiative with state-wide impact and designed to endure. Examples include: Translational development of a platform technology Research infrastructure that supports commercialization New centers for research that feature commercialization Other characteristics: * $1M maximum request from LSDF * Up to $3M allocated for Programs * 1:3 cash match of LSDF funds * The funding partners have considered and are funding the same Program

12 Applicant Eligibility * Non-profit Source of the technology or concept Commercialization partner and coordinator engaged * For-profit IP access <$500K in equity funding * For both: No allocation or quotas for applicant type Organization has to be located substantially in WA

13 Payback share your success with LSDF * Non-profits: 1x payback, after 7.5x grant amount earned * For-profits: 1.5-2x payback, after a triggering event: Receipt of >$3M licensing revenue related to the funded product Product sales Grantee s IPO or third-party acquisition Grant termination (by Grantee or LSDF [for cause]) Grantee fails to maintain a substantial presence in WA * It s not a loan, because it s not repayable if product development is abandoned or grantee goes out of business (without product transfer)

14 Calendar No cap, but LSDF approval needed for Matching preproposal submission. No interview. If Invited; otherwise resubmit All eligible proposals go to panel All proposals rated and go to Board If funded, start negotiations. If not, resubmit. PI required + 2 Pre-proposal submission to award in ~4 months.

15 Application Process: Pre- and Full Proposals * Online document submission by deadline * Minimal for pre-proposal * Substantial for full proposal * Matching pre-proposal requires staff approval for submission * Pre-proposal: full proposal is Invited or Not Invited * Proposal: Applicant team is interviewed. Rating of Not Recommended, Recommended, or Highly Recommended for funding by the Board. * Written comments after reviews * Resubmissions are allowed

16 Application Cycle: Board Evaluation and Awards * Expert reviews are fundamental to the Board s evaluation * LSDF mission goals are the main criteria, but other factors also used (portfolio balance, geographic impact) * Awards selected and announced during a public meeting of the Board

17 Application Cycle: Award Consummation * Awards subject to terms and conditions of grant agreement: * Milestones and timelines for work completion * Grant payback under certain conditions * Quarterly progress reports/meetings * Go/no-go milestones * Commitment of matching funds, where applicable * Grant initiation meeting * Reimbursement of expenses

18 Assistance * Institute of Translational Health Sciences at UW PIs invited to consult with ITHS preclinical development specialists before pre-proposal and proposal submissions Feedback on preclinical and clinical development plans Identification of research and clinical collaborators * WBBA: free commercialization consulting services * Washington Innovation Network (WIN) for Life Sciences * WBBA s entrepreneur mentoring program, funded by LSDF; launching soon * Courtney Law, Program Manager: courtney@washbio.org

19 More Information * Request for Proposals * Application instructions for pre-proposals and proposals * Forms * Reviewer guidelines * Meet with LSDF staff: programs@lsdfa.org Phone (206) *