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For more information please contact:

Merrie London, Program Manager

Merrie.London@ctinnovations.com

860-257-2894

Small Business Innovation Research (SBIR) Acceleration and Commercialization Program

Phase II Support: Up to $200K

Connecticut’s Phase II support program is designed to increase a company’s likelihood of attracting follow-on funding and creating advanced technologies/collaborations to meet the ultimate goal of commercial success and job growth in Connecticut. Like the Phase I program, the Phase II contracts are royalty-based cooperative agreements.Essentially, the funding starts as a cash infusion that is provided to a small business during the risky technology product development stage. A company begins to repay the state’s investment once it starts to commercialize. Our goal is to create a sustainable fund to support Connecticut technology companies for many years to come.

The SBIR A&C program provides Phase II winners with two tranches of funding up to $200K. The award is designed to provide Phase II SBIR-winning companies with impact funding to accelerate their commercialization potential. State repayable grants will be awarded selectively to those companies in which our funding will have a substantial impact on revenues and job creation. We strongly consider whether or not our funding will “move the needle” in a company’s growth stage.If appropriate, we may discuss our investment impact with the agency’s program manager.

The 2015 goal is to fund promising companies that have a strong likelihood of attracting follow-on funding and, ultimately, achieving commercial success. All applications will be reviewed on a case-by-case basis.Priority will be given to companies using the funding to match and secure Phase II enhancements or Phase III awards. Applicants will go through a competitive process including a panel review with a CI venture team member.

The funding going forward is focused primarily on helping a company complete a product development cycle and generate revenues. The first tranche of state funding will be provided in the final year of the federal Phase II, (and after the federal agency has approved first year milestones). The funding is designed to accelerate commercialization as well as to help bridge the “valley of death.” The funding in most cases will be used for business development and product launches. The second tranche of funding will be released once the federal Phase II is complete and all milestones have been met. This may include a conversation with the agency’s program manager.

Companies that have won multiple federal SBIR awards will be considered later stage. While the Phase II program is open to later-stage companies, priority will be given to pre-seed, seed, and early-stage companies. Potential funding constraints at the time the application is submitted will also be a consideration.

Prior Phase I SBIR A&C winners are encouraged to apply if they win the corresponding Phase II. However, companies that have already received Phase II funding through this program are ineligible, consistent with earlier policies.

Eligibility:

  • Proof of winning a Phase II in 2013, 2014, 2015 or 2016. Award is in its final year
  • Proof that the federal agency has approved milestone progress
  • Proof of external match
  • Industry/customer partner letter of commitment
  • Completed application/Letters of Good Standing/W9/financials/milestones/work plan with timeline/budget/Agency contact information

Applicants go through a competitive process and will be evaluated based on:

  • Proposed projects and work plans and how well they increase the chances of accelerating commercialization
  • Market opportunity/job creation
  • Management/advisory team
  • Proposed budget
  • Commercialization plan/product launch plan
  • Job creation plan (based on a combination of Phase II win and SBIR A&C funding)
  • Competitive landscape
  • How much the state’s funding will impact the growth of the company
  • Potential for equity, angel, or other federal investments (i.e., using funding as a match for a follow-on SBIR enhancement grant)

Phase II Evaluation Percentages (criteria for technological merit have already been vetted):

  • Commercial potential of the technology, the partnerships created, and track record (30%)
  • Proposed budget and amount of private investment committed to match the matching grant (20%)
  • Qualifications of the company’s management team (20%)
  • State’s funding Impact (20%)
  • Type and number of projected Phase II jobs and salaries paid (10%)

Attracting Investors (External Match):

Since the state’s funding is designed to help a small business win awards that lead to revenue generation, attracting an additional external investor provides the firm with a competitive advantage. Thus, a 50% match is required from an external source when applying for our assistance. Acceptable matches may come from venture/angel rounds or an industry partner/potential customer that provides funding, expertise, lab facilities, and the like. In the case of an industry partner, an in-kind portion of the match may be acceptable. Candidates will be evaluated on a case-by-case basis.

Using State Phase II Funding as a Match for SBIR Enhancement Awards or Phase III Awards:
If a company is applying for an SBIR enhancement award that requires a cash match, it may use the state’s Phase II support funding for this purpose. Each application will be evaluated on a case-by-case basis and a discussion with the SBIR program manager will be scheduled. Depending on agency requirements, external matches to enhancement awards may not be required.

Requirements After Receiving Funding:

  • Site visit, which may be initiated prior to funding
  • The federal agency must have approved federal Phase II milestone progress and the Phase II must be complete
  • If an industry partner is involved, it must provide proof of its continued involvement
  • Companies that have received other investments, i.e. other state funding, other federal funding, venture or angel funding, must use the money in a non-duplicative manner
  • Quarterly metric report submissions continuing well after funding completion to provide program feedback and value
  • Final close-out report

Companies Can Increase Their Chances of Winning By Submitting A Written Recommendation From:

  • CI’s venture or loan team
  • A private investor who demonstrates his or her current funding level and future commitment
  • A potential customer

Limitations:
There is a limit of one state Phase II award per Connecticut-based small business for the duration of the program. These awards are subject to available funding. The bulk of the funding MUST be used in Connecticut.

Non-SBIR Federal/Industry Funding: Up to $200K

Our state’s Non-SBIR support program helps a company participate in a variety of substantial institutional grant programs that require a cash match. These include other federal grants, industry challenges, foundation grants, etc. Funding will be provided to those companies in which our award will have a substantial impact on generating revenues and creating jobs. While early-stage companies are eligible, priority will be given to later-stage companies who will use the combined funding for new product development and job creation.

Like the SBIR Acceleration and Commercialization Program, the contracts for the Non-SBIR Federal/Industry Repayable Grant are royalty-based cooperative agreements. Essentially, the funding starts as a cash infusion that is provided to a small business during the risky technology product development stage. A company begins to repay the state’s investment once it starts to commercialize its technology. Our goal is to create a sustainable fund to support Connecticut technology companies for many years to come.

The state funding will be released in tranches. The number will vary based on the requirements set forth in the institution’s contract. We phase the funding to help bridge the “valley of death” and boost product launches. The award aims to provide winning companies with funding to accelerate their commercialization potential. State repayable grants will be awarded selectively to those companies in which our funding will have a substantial impact on generating revenues and jobs.We will strongly consider whether our funding will “move the needle” in a company’s growth stage.

Applicants will be reviewed on a case-by-case basis and will go through a competitive process including a panel review with a CI venture team member. Our grant cannot be used to match any other Connecticut state funding program.Companies that have received prior State Phase II funding or Non-SBIR funding through this program are ineligible, consistent with earlier policies. We require a 50% external match. This program is essentially the same as the Phase II Support match. It uses the same application and process.

Eligibility Requirements

  • Proof of winning non-SBIR funding
  • Proof of external match
  • Completed application/Letters of Good Standing/W9/financials/milestones/work plan with timeline/budget/funding institution’s contact information

Applicants go through a competitive process and will be evaluated on:

  • How well proposed projects and work plans will accelerate commercialization
  • Market opportunity/job creation
  • Management/advisory team
  • Budget
  • Commercialization /product launch plan
  • Job creation plan, based on a combination of institutional and state funding
  • Competitive landscape
  • How well the state’s funding will impact the growth of the company
  • The potential for equity, angel, or additional external investments

Non-SBIR/Federal/Industry Evaluation Percentages (after criteria for technical merit has been vetted):

  • Commercial potential of the technology, partnerships created, and company’s track record (30%)
  • Proposed budget and amount of private investment committed to match the matching grant (20%)
  • Qualifications of the company’s management team; (20%);
  • State’s Funding Impact (20%)
  • Type and number of projected Phase II jobs and salaries paid (10%)

Attracting An External Match:

Since the state’s funding is designed to help a small business win awards that lead to revenue generation, attracting an additional external investor provides the firm with a competitive advantage.Thus, a 50% match is required from an external source when applying for assistance. Acceptable matches may come from venture/angel rounds or an industry partner/potential customer that provides funding, expertise, lab facilities, and the like. In the case of an industry partner, an in-kind portion of the match may be acceptable. All candidates will be evaluated on a case-by-case basis.

Requirements After Receiving Funding

  • Site visit (may be initiated prior to funding)
  • Proof that the company met agency and state milestones
  • If an industry partner is involved, it must provide proof of its continued involvement
  • Companies that have received other investments, i.e. other state funding, other federal funding, venture or angel funding, will be expected to use the money in a non-duplicative manner
  • Quarterly metric report submissions that will continue well after funding year to provide feedback and value
  • Final close-out report

In addition, a discussion with the funding agency may be scheduled with CI

Companies Can Increase Their Chances of Winning By Submitting A Written Recommendation From:

  • CI’s venture or loan team
  • A private investor demonstrating his or her current funding level and future commitment
  • A potential customer

Final approval will be made by SBI’s management team, CI’s venture team and its CEO

For more information contact Merrie London: 860-257-2894 or merrie.london@ctinnovations.com

Getting Started

  1. Become a member of the CTiHUB-Register here.
  2. Contact Merrie London - merrie.london@ctinnovations.com and request a private page to begin the application process.
  3. Some of the documents use a required format:
    1. Phase II Support Application
    2. Budget
    3. W-9 Form
  4. Review and download the How to Request Letter of Good Standing
  5. Upload your completed grant application and required documents on your private page.
  6. Review a contract template

Obtaining a Letter of Support for an SBIR Federal Application Submission

If you need a letter of support for your SBIR/STTR application, please do the following:

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