Sample MEDC Presentation

1
Michigan A Research and Technology Magnet
2
Stages of Technology Company Growth
Pre-Seed
Seed
Early Stage
Mid to Late-Stage
Expansion / Exit

• IP/Technology
• No revenues
• lt500K
• Angels
• Family Friends
• Intellectual Property and Market Assessment
• 3 Angel networks
• 3 Pre-seed Funds

Technology Stage Needed Source of
Capital Uses of Capital Michigan Landscape

• Product dev.
• 250K to 1M
• VC Funds
• Development testing of Prototypes
• 10 VC Funds
• 21st Century Fund

• Beta clients
• 1M to 5M
• VC Funds
• Sales and Marketing / Management /Customers
• 10 VC Funds
• 21st Century Fund

• Cash flow /
• Accounts Receivables
• 2M to 20M
• VCs / Mezzanine / Private Equity
• Add management
• Expansion in new markets
• New Products
• 2 VC Funds
• 8 PE Funds
• 1 Mezz. Fund
• 21st Century Fund

• Expansion / IPO
• 20M upwards
• PE / Mezzanine/ Inv. Bankers
• Growth by Acquisition
• 2 VC Funds
• 8 PE Funds
• 1 Mezz. Fund
• 21st Century Fund

3
EARLY STAGE CAPITAL

• Angel Networks
• High net worth individuals investing in young
  start-up companies
• Pre-seed Funds
• MUCI partnership on Michigan public universities
• Automation Alley
• Ann Arbor Spark
• Emerging Business Fund
• - Provides working capital and leverages federal
  R D investments

4
EARLY STAGE CAPITAL

• Venture Michigan Fund
• 150 million in State tax vouchers leveraging up
  to 350 million in private sector investments in
  early stage capital for Michigan based technology
  companies
• Capital Access Program
• A pooled reserve to encourage participating
  financial institutions to take a somewhat riskier
  loan (avg. size 53,000 ranged from 400 to 2.4
  million)

5
The Michigan 21st Century Jobs Fund

• A 2.0 billion, long-term focus on growing and
  diversifying our economy with emphasis on
  developing competitive edge technologies

6
21st Century Jobs FundJump start the economy
now and diversify and grow our economy for the
future

• Increase Capital Investment
• Increase Commercial Lending Activity
• Encourage the Development and Commercialization
  of Competitive Edge Technologies

7
21st Century Commercialization Development
Fund2006

• Up to 100 Million for 2006
• Broadened Technology Eligibility
• Two 6-Month Funding Cycles Per Year
• Put Capital to Work by July, 2006

8
Eligible Programmatic Activities

• Commercialization (products, processes, services)
• Fund Basic Research (max. 10)
• Invest in Applied Research
• Attract Federal Research dollars (max. 10)
• Leverage SBIR/STTR funding (max. 25)

9
Michigan 21st Century Commercialization
Development Fund Competition
Commercialization
Applied Research
Basic Research

• Life Sciences
• Homeland Security
• Advanced Automotive, Manufacturing, and Materials

• Life Sciences
• Homeland Security
• Advanced Automotive, Manufacturing, and Materials
• Alternative Energy

• Life Sciences
• Homeland Security
• Advanced Automotive, Manufacturing, and Materials
• Alternative Energy

10
Commercialization Support Services

• Maximum Funds -- 20 million
• Pre-Seed Funds
• Business Acceleration Services
• Statewide Technology Support Networks
• Existing Wet Lab Facility Redevelopment
• Specialized Business Services

11
Key Elements of the 2006 Competition

• Electronic submission ONLY
• Letters of Intent required followed by full
  proposals
• Collaboration encouraged
• Leverage required
• Peer-review process by industry experts
• Proposal review feedback
• Board has final decision making authority

12
Peer Review/Application Process

• 6-Month Cycle
• Letter of Intent (No Pre-Proposals)
• RFP Compliance Phase
• Written Review Phase
• Interview Phase
• Award Recommendations
• Ability to Carry Funds Forward to Next Funding
  Cycle

13
Proposal Review Criteria

• Scientific and Technical Merit (25)
• Personnel Expertise (25)
• Commercialization Merit (25)
• Ability to Leverage Other Resources (25)

14
The Competition Process

• Enter MEDC website
• www.michigan.org/21stcentury
• Click on application button
• Enter registration info
• Fill out LOI form
• Click submit button

15
Application Timeline
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www.michigan.org