NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY COMPETIVE SOLICITATION For TECHNOLOGY ACCELERATOR PROGRAM MANAGER 1. INTENT / SUMMARY: The New Jersey Economic Development Authority ( Authority ) is seeking qualifications and solicitation submissions from well-qualified firms to manage a technology accelerator in New Jersey. Program Summary The Edison Innovation Tech Accelerator Initiative is conceived as a mentorship-driven, seed stage investment fund based on initiatives in other states that have successfully engaged the community to support promising entrepreneurs. The Initiative will aim to provide a competitive environment for technology-focused entrepreneurs to showcase their products, ideas and business acumen in a mentor driven program for an opportunity to receive funding. 2. BACKGROUND: In August of 2011, the New Jersey Economic Development Authority requested information from the marketplace and industry members on advancing the proposed technology accelerator model. The Authority received six responses and has considered the market and industry information from the respondents, to further inform and define our thinking around the proposed accelerator model. We would like to thank those respondents for sharing their insights and suggestions around advancing this initiative. The Authority would now like to request formal submissions, from all interested Accelerator Managers. There will only be one Accelerator Manager awarded the funding in the form of a limited partner investment. The decision around the awardee will be based upon a scoring of the criteria noted herein. The scoring of the criteria will be based upon performance, experience, thoroughness and content of the responses on the noted requested criteria. Selection shall be based on the proposal that is determined to rank highest on the evaluation criteria. When preparing your response to this solicitation, keep in mind that, in the solicitation, the word shall or must denotes proposal items which are mandatory for a proposal to be deemed complete; the word should denotes proposal items which are recommended, but not mandatory; and the word may denotes proposal items which are permissible, but not mandatory. 1
3. TERM: It is the intent of the Authority to award a one (1) year award through a limited partner investment, with two (2), one (1) year additional award options, to be exercised at the sole discretion of the Authority. In the event the Authority chooses to exercise one (1) or both follow on options, it shall do so on the same terms and conditions, subject to the availability of funding. The basis for the second and third years of funding will be dependent upon a successfully launched program in year 1, and the same required private sector matching commitments as in year 1. The success of the first year program will be determined at the sole discretion of the Authority and will include the review and analysis by the Authority of the required program financials, and information pertaining to the mentored and funded companies, along with how the execution compares to the initial submission within the response to this solicitation. The renewal information shall be provided by the awardee at least 60 days prior to the anniversary date, of the execution of the award documents. 4. SOLICITATION PROJECTED MILESTONE DATES: Solicitation Responses Due: Monday, November 28, 2011 5:00 PM, via electronic format only to TechAccel@njeda.com Notice of Intent to Recommend Award for Consideration to Authority Board: Friday, December 16, 2011* Review and Consideration by Authority Board of Directors: January 10, 2012* Documentation and Contract Executed: February, 2012* * The above dates are provided to interested Proposers for planning purposes only. These are estimated timeline dates and do not represent firm commitment dates by the Authority. 5. AVAILABLE PROGRAM FUNDING: The program will be funded with $150,000 per year, over three years, for a total of $450,000 of available funding, through the NJ Economic Development Authority, which has a history of successful investment in the technology and life sciences sector. The Authority s investments are expected to earn a reasonable rate of return, and funds in which the Authority invests must demonstrate an ability to leverage private investment dollars. The funding will be advanced to the successful awardee at $150,000 per year, over three years, given the successful renewal of the program in years 2 and 3, for the total of $450,000. The successful awardee must demonstrate a commitment, at a minimum for the first $150,000 for a one-to-one match at application, in order to be considered for the award, with the requirement for another $150,000 of matching prior to the final award documents being executed. The leverage goal of the program is for $2 of private 2
sector to match the $1 of Authority committed funds. The Authority would consider awarding a smaller amount, if the full matching could not be obtained, or other reasons which the Authority shall see fit in their sole discretion, but in all instances the $2/$1 match must be maintained. The Authority will only consider a minimum award of $100,000 with a $200,000 private sector match. 6. SUBMISSION REQUIREMENTS This is a competitive solicitation. All interested Program Managers must provide their submissions by 5pm EST on November 28, 2011, in order to be considered. You must submit your application in electronic format to techaccel@njeda.com in PDF format. Only electronic submissions will be accepted. Furthermore, please adhere to the following guidelines: Include a cover page with preparers contact information. Include a table of contents, that details all of the required evaluation criteria Include page numbers Address each of the Solicitation Evaluation Criteria Submit all requested information, denoted with a must or shall 7. PROPOSAL EVALUATION CRITERIA AND REQUESTED INFORMATION SUBMISSION: In order to be considered, submissions must meet or exceed the following criteria, as each item below will be scored and weighed against competing bids. Experience: The Interested Program Manager must list (using bios, resumes, and other documentation) relevant experience or skill sets that will allow you to successfully manage the NJ Accelerator Program. You should indicate if this experience is related to the industry, is it academic, or both? You must list if these individuals are NJ residents. The Interested Program Manager must provide specific examples of successful investments in early stage technology companies, including your role and/or the role of your proposed team members. You also must include: the investment success metrics (i.e. ROI, cash on cash multiple, etc); time line; job creation; and geographic location for the investment. 3
The Interested Program Manager must provide a total of three (3) references including the names, telephone numbers and e-mail addresses of a contact person. One of these references should be an individual who can provide a reference, regarding the Applicant s performance for a specific investment in the previous bullet. The Interested Program Manager must list all known parties which will manage the accelerator, and include the projected weekly time commitment. This should include an estimate on the amount of time the individuals will commit to devote to the NJ accelerator, both during the program cycle and outside the program cycle. If the management team has time commitments outside the proposed accelerator, you should also list those commitments, along with their specific time commitments on a weekly basis to these other commitments. If there is an unknown party, you must list this, along with their anticipated time commitment. In the event the Interested Program Manager will be part of a broader accelerator network, the respondent must list which one, and if the relationship has been formally documented. The applicant should include such documentation. Mentor Network: You must list who and how, you will leverage your network to help mentor start-up companies. This list should include, but not does not have to be, limited to, lawyers, accountants, serial entrepreneurs, angel and VC investors. You should note if these mentors are committed at the time of your submission, and if so, how much time will they set aside during an active program period? You should be as specific as possible, including name, affiliation, state of mentor employment (i.e. NJ), and area of expertise. You should include resumes and/or bios for any of the committed mentors. Marketing Outreach and Readiness to Proceed: You must detail what steps have been taken to move forward with this initiative in the absence of funding from the EDA. You must include how long will it take (upon selection) to get up and running? You must include a 12 month projected time line, post award. The interested Program Manager should include any steps advanced, and/or planned for marketing the accelerator. You should include what forms of social media have been initiated to date and/or are planned. Be as specific as possible and include web links, twitter accounts, LinkedIn groups, etc. The interested Program Manager should include if they intend to work with the existing NJ industry trade groups and if so how. 4
Model Specifics: Location: The interested Program Manger must note if a particular location has been identified? If not, why not? If it has been identified, you must include details such as whether it s space through partnership with a university, incubator, size of space, facilities, ease of transportation, etc. If the space is on the border of Philadelphia or New York, you should explain how that enhances the state s objective to grow and retain jobs and businesses in NJ. You must comment on how you will engage the statewide NJ entrepreneurial community, outside a specific site location (i.e. If you propose hosting the program in Atlantic City, NJ how will you reach entrepreneurs in Hoboken, NJ) Leverage: The Authority will be providing $450,000 over a course of 3 years, assuming that it exercises both annual additional year options. A minimum leverage ratio of 2:1 equals $900,000 in private investment over the same period of time. This equates to $150,000 of EDA matched with $300,000 of private sector funding per year. The Interested program manager must list and provide supporting documentation of committed matching funds on hand for the year 1 initial 1:1 required match of $100,000- $150,000. You must provide documentation of additional proposed matching funds to get to the required 2:1 matching prior to executing documents if selected. Be as specific as possible, including names, sources and timing of funding. This second tier of soft circled matching funds must be in the range of an additional $100,000- $150,000. Structure: You must provide detail around the organization structure, including the Limited Liability partnership making the investments, and the legal name of who is applying for the funding under the accelerator program. If helpful, an organizational flow chart may be included. You must include and list, any affiliated management or other companies and information on the relationship and inter organizational activities. You must include how such related entities will benefit from the relationship with the tech accelerator and the ownership interest the Program Manager has in the related entity. 5
Funding Model: The applicant must provide monthly financial projections for the operating entity, including balance sheet and income statement for the 12 months following the award, and annual income statement for two years thereafter. The proforma income statement must include expense detail. The applicant must provide projections for the number of NJ businesses to be assisted in year 1 post funding, and the two subsequent years, along with projected metrics for both mentored and funded businesses. You must include the investment size and the projected number of companies to be funded, along with the accelerator s ownership percentage for the investment. You must include how many sessions/classes you anticipate holding in year one and the length (days, weeks, months) of the sessions. The applicant must include the investment return split, on a percentage basis, between the manager(s) and other LPs/Investors. The interested Program Manager must detail the benefits which will be available to the selected entrepreneurs. You should be as specific as possible. For example you may want to consider - rent, hours of mentoring, donated services, etc. Investment Criteria: You must explain the process for screening applicants, including selection criteria. You must include the composition of the screening committee or how it will be determined. Be as specific as possible. The Authority will require a seat on the selection screening committee. 8. SCOPE OF SERVICES / DELIVERABLES When preparing the submission, the interested Program Manager, must consider the following deliverables, as the minimum requirements of the performance, against the resulting contract. The Authority will require the successful Program Manager to provide quarterly financial statements and program updates in written form within 45 days of the end of each calendar quarter after the award documents are executed. The program updates must include detail on companies assisted- including but not limited to: industry, business specifics, location, jobs, and highlight on business advances. The quarterly report should also include updates on programmatic activities including events and marketing. 6
The Authority will require annual accountant prepared financial statements for the life of the partnership. The Authority will require the successful accelerator Program Manager to commit to invest the Authority s prorata portion of investment dollars (as compared to overhead dollars) in New Jersey companies (example follows.) Example: If the successful awarded program has 50% of all available program dollars being invested into technology companies, and the overall program budget in year 1 is $500,000, which includes $150,000 contributed by the Authority, then at a minimum, the successful Program Manager must invest $75,000 in New Jersey businesses in year 1. The awarded Program Manager must successfully launch and manage a NJ hi-tech accelerator which will include both mentoring and investment. The awarded Program Manager must provide all of the material service outlined in their submission to the Authority. The Authority shall be invited to participate in the program presentation day, and in the candidate selection committee. The Authority reserves the right to request other supporting documentation from an applicant to support approval of the award. All documents submitted by the Applicant are nonreturnable to the Applicant. The Authority reserves the right to modify, expand or delete any portion(s) of the scope of services. The Authority reserves the right to terminate this solicitation for any reason. The Authority also reserves the right to reject any proposal in its sole discretion. Incomplete proposals or proposals not received by the due date will result in the application not being reviewed or considered. 9. QUESTIONS and ANSWERS Questions concerning this competitive solicitation, may be submitted, in writing via e-mail, to techaccel@njeda.com and must be received at or before 5:00 PM prevailing local time, on Wednesday, November 16, 2011. Phone calls / faxes shall not be accepted. The subject line of the e-mail should state: Tech Accelerator Competitive Solicitation 7
Answers to material questions, submitted within the required timeline, for this solicitation will be posted to the Authority s website - http://www.njeda.com/techaccelerator as soon as available, but in no event later than Monday, November 21, 2011 at 5:00 PM. Confidentiality: Applications received will be reviewed only by the Authority. All proposals submitted will be subject to requests for disclosure, including but not limited to, a request pursuant to the Open Public Records Act ("OPRA"), N.J.S.A. 47:1A-1 et seq. If the applicant believes that information contained in its proposal merits confidential treatment pursuant to OPRA, any such purportedly confidential information submitted to the Authority shall be specifically identified and marked by the applicant. 8