The North Carolina Biotechnology Center as financial resource to industry John P. Richert Vice President, Business & Technology Development SBIR National Conference May 1, 2007
North Carolina Biotechnology Center A private, non-profit corporation Established by the State in 1984 $17.6 million budget 37-member board of directors 72-member staff Five regional offices: Asheville Charlotte Greenville Wilmington Winston-Salem
Mission To provide long-term economic and societal benefits to North Carolina by supporting biotechnology research, business and education statewide
Operating Philosophies Remain non-partisan Do not conduct laboratory research Enhance instead of duplicate Leverage resources Partner with others
Leveraging Resources Through Partnerships NC agencies National agencies Industry Policy makers Investors International partners Universities Community colleges
Business Resources at the Biotechnology Center Funding Programs Designed to support North Carolina biotechnology companies N C Life Science Business Development Initiative To facilitate potential partnering opportunities between North Carolina life science companies and larger companies Networking / Education Biotech Forums, Biotech Day Library Excellent resource for the business of biotechnology
Biotechnology Center Loans Inception Research Growth TEAM $50K BDL $25K SBIR Bridge $75K SRL $150K SGL $250K BDL requires equal matching by the company TEAM optimizes in-kind assistance SGL requires equal matching by VC s, angel network
Biotech Center Loans - Inception - Technology Enhancement & Acceleration Model (TEAM) $50K for North Carolina university spin outs Leveraged with mentoring, stakeholder contributed services and CEO recruitment through BATON program Business Development Loan $25K to help start companies not emanating from the university setting Biotechnology Center money must be matched by the company
SBIR Bridge Loan Biotech Center Loans -Research - $75K to support company research between SBIR Phase 1 and Phase 2 grant Small Business Research Loan $150K to support product development research Business plan and research proposal reviewed by outside reviewers
Impetus for the Strategic Growth Loan TEAM $50K BDL $25K SBIR Bridge $75K SRL $150K SGL Venture Founder & SBIR SBIR Angel $ Ph I Ph II $250K
Strategic Growth Loan (SGL) The company has achieved a commercially-important POC, (e.g., through SRL, SBIR grant) Leverages the Biotech Center s $250,000 loan through a matching investment from either an angel network or a venture fund Provides a significant level of funding that will help the company reach a meaningful, fundable event For company growth, not restricted to research Not for bricks and mortar or C-level employee salaries / benefits
Loan Terms Loans are tranched: 50% upon signing 40% upon mid-point report 10% upon final report Unsecured 5 year balloon payment 1 percentage point above prime For loans of $75,000 or above, we take 25% of the loan amount in warrant coverage
Collaborative Funding Grant (CFG) Purpose: Support a postdoctoral fellow in a university research laboratory who will perform a project of commercial interest under the guidance of a principal investigator. Encourages collaboration between academia and industry Helps move technology from lab to marketplace Leverages Biotechnology Center money with Kenan Institute
Collaborative Funding Grant (CFG) 4-way partnership: Biotechnology Center Kenan Institute University Company Partner Total package: $60K cash + $20K in-kind = $80K Company Size (# of employees) Company Contribution Biotech Center and Kenan University In-Kind Contribution 1 10 $10,000 $50,000 $20,000 11 100 $15,000 $45,000 $20,000 101 + $20,000 $40,000 $20,000
Some compelling results North Carolina is the nations 3 rd leading biotechnology company state 350+ bioscience companies 48,000+ people in the industry $16 million in financial assistance provided to 100+ companies $1.3 billion in catalyzed follow-on funding raised from other sources $2 million invested in 20+ North Carolina venture capital funds and angel networks that invest in life science companies
North Carolina s Biotech Future Statewide Strategic Plan for Biotechnology, requested by Gov. Mike Easley New Jobs Across North Carolina Goal North Carolina will have 125,000 biotech-related jobs by 2023
www.ncbiotech.org