TECHNOLOGY ACCELERATION FUND
2018 APPLICATION
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TABLE OF CONTENTS
Technology Acceleration Fund (TAF)……….……………………………....………………………………………………1
Program Description……………………………………………………………………..……………….………………………2-3
A. Overview B. Funding & Eligibility
C. Terms of Investment
D. Use of TAF Loan
E. Economic Impact
Program Policies & Procedures……………………………………………………………………………………….……..4-5
F. Evidence of Match Commitment
Review Process……………………………………………………………………………………………………………………….…6
Post-Award Procedures………………………………………………………………………….…………………………………7
G. Funding Agreement
H. Funds Disbursement
I. Reporting
J. Project Tracking & Management
Timetable & Directions for Proposal Submission…………………………………..…………………………………8
Forms & Templates………………………………………………………………………………………………………………9-13
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TECHNOLOGY ACCELERATION FUND (TAF)
Period of Performance: Up to 12 months from contract execution Size of Award: Up to $50,000 Eligibility: Science and technology companies located in, or willing
to relocate to, Southeastern Pennsylvania Company Match: 1:1 (cash or in-kind contribution; ≥50% must be cash) Form of Investment: Secured Convertible Loan, 8% Interest, 5-year Term Submission Format: Online/Email Application Fee: $250 Fee Payable to: Ben Franklin Technology Partners SEP Email Application and Materials to: [email protected] 215-972-6700 ext. 3226
Mail Fees to: Kate Srinivasan, Client & Partner Relations Ben Franklin Technology Partners Southeastern Pennsylvania 4801 S. Broad Street, Suite 200 Philadelphia, PA 19112
Funding for this program is made possible by the Commonwealth of Pennsylvania, Ben Franklin Technology Development Authority.
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PROGRAM DESCRIPTION
A. Overview The Technology Commercialization Group (TCG) and Investment Group (IG) of BEN provide a comprehensive set of programs and services to accelerate the commercialization of new technologies, foster the growth of early stage and established technology companies, accelerate the transfer of university and research institution technology into industry, and provide resources to promote translational research. This is accomplished through funded company projects that can partner the region’s enterprises with universities, government or private solution providers; by working with area universities to develop consortia approaches that apply discrete research and development strengths to solve problems; and by piloting new approaches that enable the market to inform and connect to discoveries. TCG, through its Technology Acceleration Fund (TAF) program, seeks to address the lack of early-stage technology commercialization funding and to leverage funds typically available under programs such as SBIR, STTR, etc., by providing loans up to $50,000 to support proof-of-concept and prototyping projects. The success of this new level of funding will be assessed based on an increase in any Federal funding to the company, or the increased attractiveness of the company to providers of investment capital, such as the BEN Investment Group. Collaboration with regional research institutions is encouraged but not required. B. Funding & Eligibility Loans through the Technology Acceleration Fund are up to $50,000
Loans are made to the company expressly for projects with potential commercial applications for
which this funding will provide critical capital to achieve this goal
The loan must be matched 1:1, with a cash and/or in-kind contribution from the company. The
minimum cash match is 50%. The company match may be applied to complementary needs of the
project, as approved
Companies located in, or willing to relocate to, Southeastern Pennsylvania are eligible for this
program
C. Terms of Investment The award is in the form of a loan at a rate that tracks the BEN Investment Group, currently 8%, with
a term of five years
Convertible debt option; convertible at next round
Security is needed in the form of lien on assets or Negative Pledges consistent with our investment
documents
Right to participate in any next round of funding, up to $500,000
Repayment must start by the second Anniversary
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There is a $250 application fee, payable to the BEN, upon acceptance of the award. This fee is
waived if the company has already submitted an application to the BEN Investment Group.
Companies are required to commit matching funds of a minimum of $1 (cash or in-kind
contribution) for every $1 funded by BEN, with minimum cash match of 50%. Note that companies
providing increased cash match will be more competitive.
D. Use of TAF Loan TAF loans must be committed fully by the company for the services identified in the application. These funds may be used for personnel, supplies, prototype development, and other direct R&D expenses; as well as technical feasibility assessment, field testing, travel and other efforts related to the project. TAF loans cannot be used for indirect expenses. E. Economic Impact The major goal of TAF assistance to a company is to stimulate economic growth in the Commonwealth. The development of innovative new products and manufacturing processes is foreseen as potential outcomes of this funding. Through this program, the Commonwealth seeks to encourage new and existing companies to grow and prosper in Pennsylvania. Accordingly, companies awarded funding through the TAF program will be surveyed annually by BEN for five years to assess derived economic impact.
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PROGRAM POLICIES & PROCEDURES
F. Evidence of Match Commitment
Evidence of match commitment, typically a letter, must be submitted with the proposal from each
source of support for the project. These commitments may be contingent on award of the funding. A
copy of the letter should be addressed to Anthony P. Green, Ph.D., Vice President, Technology
Commercialization Group. As we review your proposal, full evidence of the match and its terms will be
required to be submitted for review.
Companies will be required to commit matching funds of a minimum of $1 (cash or in-kind
contribution) for every $1 funded by BEN
A minimum of 50% Cash Match is required
Commitment Letter
Commitment letters should follow the format and address the same points as the sample letter that
follows:
Company Letterhead
Dear__________,
This letter represents a commitment by (name of company) to provide $
___________ in matching support for the project entitled "______________”. Of
this support, $_______ is a cash payment to carry out its work on this project. We
are also providing $________ of in-kind support; including the salary cost of
personnel, use of company equipment, materials, and other services devoted to this
project.
In addition, our company will be receiving $______________________ from (name
of funding source) to support our work on this project. This support is documented
in the attached letter from (name of funding source).
All funding is for the period ending ________________.
Our company agrees to abide by the program policies and procedures.
Sincerely,
Signature
Title
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University-Company Agreements
NOTE—University-Company collaborations are encouraged, but not required to receive funding.
However, if collaboration is proposed, evidence of the following is required:
1. Sponsored Research
Prior to award, the company must show evidence of a current signed contract with the university
partner for the specific services stated in the project work plan. Typically, this involves developing a joint
statement of work and agreement involving the university principal investigator (PI), the university
sponsored research office, and the company representative. A joint statement of the proposed work
should accompany the application.
2. Intellectual Property
The company retains complete ownership of all technology developed before the start of funding, as
well as any technology developed by its employees during the project. For new technology developed by
the research institution, or collaboratively, by the company and the research institution, BEN requires
that the company negotiate an agreement with the university regarding ownership rights to any
intellectual property developed by the university partner in servicing this contract prior to BEN final
funding approval. BEN will review the IP agreement between the institution and the company.
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REVIEW PROCESS
The evaluation of investment applications is expected to be completed approximately six weeks from
submission. The time may vary, depending on the volume of applications.
BEN maintains the confidentiality of proposals. All staff and reviewers sign non-disclosure agreements
with BEN. Proposals should include enough information for reviewers to make informed decisions on
the merits of the proposed work. All proprietary information should be clearly marked.
Both technical and commercialization reviews are made to ensure that proposals are based on sound
scientific and technical principles, that the development and commercialization program is reasonable,
and that the proposals are likely to create positive economic benefits and employment in Pennsylvania.
While product development timelines vary widely, projects demonstrating steady progress toward
timely commercialization and job creation receive priority consideration.
Application evaluation criteria include:
Significance of the commercial opportunity
Qualifications of the company
Adequacy and achievability of work plan and milestones
Near-term (3-5 years) timelines for commercialization
Estimated quantitative company financial impact of the development
Plan for follow-on funding addressed
Alignment with BEN Investment requirements and goals
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POST-AWARD PROCEDURES
G. Funding Agreement
BEN will enter into a funding agreement with the company. Prior to award, the company must show
proof of match and where appropriate, the company must show proof of having negotiated and
executed an agreement with the institutional partner. Investment proceeds may be disbursed as
described below after final execution of the contract.
H. Funds Disbursement
BEN will provide the company with the required invoicing format and allowable substantiating
documentation
After execution of the funding agreement, an advance in an amount up to 50% of the contract value
may be invoiced immediately to begin work
Funds will be disbursed upon receipt of invoices and substantiating documentation, submitted by
the company. All invoices except for the advance must show that the company is meeting the
required $1 to $1 match
Company may submit invoices monthly or quarterly, as expenses are incurred, up to a maximum of
90 percent of the investment amount
The remaining 10 percent may be invoiced together with the final project and expenditure reports,
which are required at the end of the project period
Invoices are normally processed and checks mailed to recipients within three weeks of the receipt of
the invoice by BEN
I. Reporting
Award recipients are required to submit a final project report and expenditure report within 30 days
from the conclusion of the project period. The Final Project Report is a brief narrative of the project
accomplishments, milestones and future commercialization plans. The Expenditure Report requires an
accounting for the project expenditures and match of the company and/or participating organizations.
J. Project Tracking & Management
BEN will actively monitor the project during the funding period and until repayment is completed. A TCG
Manager will conduct periodic site visits, and will be available for advice and consultation. Companies
are encouraged to contact their Manager or the staff of BEN throughout the year. Companies are
required to submit quarterly financial statements.
The Commonwealth of Pennsylvania requires an annual performance survey of BEN funded companies.
The survey includes information on the number of jobs created, the number of products
commercialized, annual revenues, and the amount of private dollars raised. Companies are required to
keep accurate and verifiable records which can be submitted annually. BEN will survey the company for
five successive years following the conclusion of the project period.
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TIMETABLE & DIRECTIONS FOR PROPOSAL SUBMISSION
Timetable
Proposals will be accepted on a rolling basis.
A complete submission includes:
A detailed technical proposal, with budget and milestones
Match commitment letter
A copy of the company’s most recent financial statements, if available (to include at least a balance
sheet and income statement)
Recommended Inclusions:
1. Proposal Cover Page
2. Company Information Form (This form will be emailed to you when formally applying)
3. University Partner Information (If Applicable)
4. Non-Confidential Executive Summary
5. R&D Proposal
6. Technical and Commercial Activities:
Project overview and expected outcome for funding
Technology description and target applications
Value Proposition
Competitive advantage vs Market options
Data (Mechanical/lab, Preclinical, Clinical)
Intellectual Property
Company/ Development timeline
7. Attachments
Project Milestones and Budget
Management Team, Resume/Curricula Vita
Letter(s) of Commitment from Funding Source
Company / University Agreements
Financial Statements (most recent completed)
NOTE—The following forms and templates are not required, but are offered as guidelines for
completeness and for your convenience.
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COVER PAGE
TECHNOLOGY ACCELERATION FUND APPLICATION
BEN FRANKLIN TECHNOLOGY PARTNERS OF SOUTHEASTERN PENNSYLVANIA
PROJECT TITLE: ______________________________________________________
Name of Principal Contact Person: Title:
Company: Telephone:
Address: ________________________________________________________________
City: _______________________________
State:___________ Zip:_________ Telephone: _________________________
E-Mail: Web Site Address: ________________________
KIZ Company: Yes __ No __ If yes, which KIZ?
Participating Organizations: Name all companies, universities, and other institutions participating in the
project, along with each participating organization’s address and contact information.
Participating Organization/Faculty Address & Contact Information
_____________________ ____________________________________
_____________________ ____________________________________
Amount Requested from BFTP/SEP: $ *
Total Project Budget: $ *
*Please make sure these amounts match those listed on your project budget sheet.
Disclaimer: The submission of the proposal shall not create any rights on behalf of the submitter,
contractual or otherwise. The submission of a proposal does not constitute or create any legally binding
or enforceable agreement or commitment on the part of TCG other than to maintain the confidentiality
of proposal information identified as confidential. No past or future action, or course of conduct by
TCG, will give rise to or serve as a basis for any legally enforceable duties or obligations on TCG other
than to maintain the confidentiality of proposal information identified as confidential.
By Authorized Official at Applicant Company:
Signature: Date:
Type or Print Name and Title:
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NON-CONFIDENTIAL EXECUTIVE SUMMARY
Proposal Title __________________________________________________________________
Company Name ________________________________________________________________
Research Institution _____________________________________________________________
Provide a two-page maximum executive summary of the project addressing each of the following:
A description of the technology and the project plan
An assessment of the market need, and differentiation
The company's business, major product/services, primary markets
Anticipated outcome and economic benefits of the project.
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PROJECT DESCRIPTION
Technical and Commercial Activities
A. Problem Statement
Identify the goals and objectives of the project.
Describe the present state of the technology that forms the basis of the project.
What is limiting in the current technology that makes improved technology desirable?
Identify competing technologies and the advantage(s) of the proposed technology.
B. Program of Work
Describe the stage of current product development efforts, e.g. prototype development,
preclinical animal studies, product testing, etc. Later, we may ask for copies of data, journal
articles and other support.
Describe in detail the specific work to be carried out.
Specify the role of each participating organization and where the work will be conducted.
Describe the roles of the key personnel in the project. Summarize the qualifications of the
project's management and technical team members, showing how their education and work
experience qualify them for the project. Append a resume for each team member. (Please
attach resumes to the end of the proposal.)
C. Commercialization Activities
Identify the target market(s) for the product/process to be developed in the project. Include
market size, potential penetration, target customers, and competition. What share of the
market does the company expect to capture?
Describe how the company will manufacture or produce the product or service developed in this
project. Include any subcontracting and how the company will conduct quality control.
Explain how the company plans to fund the commercialization of the product/process.
Provide a brief marketing plan which will be carried out from now until the product is
established. Include personnel, advertising and promotion, pricing policies, sales and
distribution strategy, etc.
D. Impact on Company
Summarize the nature of the company's business, including major products or services, and
describe how the results of this project will affect that business.
For existing companies with revenues, provide current gross annual sales figures and projected
increases in sales resulting from this project.
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COMPANY SUMMARY FINANCIAL RESULTS/PROJECTIONS
2016 Actual
2017 YTD
2018 Projected
2019 Projected
2020 Projected
Revenue
Fund Raising
Cost of Goods Sold
Gross Margin
Expenses
EBITDA (Not including fund raising)
Expected Jobs Within Company:
2016 Actual
2017 YTD
2018 Projected
2019 Projected
2020 Projected
PA FTE
Outside PA FTE
Total FTE
Industry – Academia Relationships
Address each of the following (if applicable). Use a maximum of one (1) page.
Has a contractual relationship between the company and the university/non-profit institution
been signed? (A copy is required before final BEN project approval)
Is there a signed intellectual property agreement between the company and the university/non-
profit institution? (A copy is required before final BEN project approval)
Describe any business relationship (e.g., employee, consultant) that the principals, directors,
officers, employees or advisors of the firm(s) have with the university or non-profit partner.
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BUDGET AND MILESTONES
BFTP Project Budget
Please provide a description of each expenditure from each source. The amounts here should coordinate with the BFTP Project Milestones.
Use of Funds Project Costs (including both BFTP Funds requested and Match)
Cash - BFTP
Cash - Other
Source of Cash In-Kind Total
Personnel (Name, Title, Hours, Hourly Rate and State Located)
0
0
0
0
0
0
0
Total Personnel 0 0 0 0
Consultants/Subcontractors (And State)
0
0
0
0
0
0
Total Consultants/Subcontractors 0 0 0 0
Other Direct Expenditures (including overhead)
0
0
0
0
Total Other Direct 0 0 0 0
Total Project Costs 0 0 0 0