13 0730 session 2 webinar-alternative sources of funding - grants

Cleantech Open2013 Webinar Series

Tuesday, July 30, 2013Session 2: Alternative Sources of Funding - Grants

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The Summer Program – July – September 2013

Date Time (PDT)

Session I – Worksheets Time (PDT)

Special Topic Sessions

7/9 1:30 to2:30pm Business Model Canvas (Review) 2:45 to

4:00pm LaunchPad Central (Review)

7/16 1:30 to2:30pm Product/Market Fit 2:45 to

4:00pm Systems Review, PR 101

7/23 1:30 to2:30pm Markets and Getting to Them 2:45 to

4:00pm Term Sheets

7/30 1:30 to2:30pm Product/Technology Validation 2:45 to

4:00pmAlternative Sources of Funding - Grant Writing / Crowd Sourcing

8/6 1:30 to2:30pm Financials Analysis & Planning 2:45 to

4:00pm IP Licensing from 3rd Parties

8/13 1:30 to2:30pm Legal Environment, Issues and Risks 2:45 to

4:00pm Cap Tables

8/20 1:30 to2:30pm Management Team 2:45 to

4:00pm Working with the Utilities

8/27 1:30 to2:30pm Sustainability 2:45 to

4:00pmTell Your Story, Sell Your Story (Communicating value to stake holders)

9/10 1:30 to 2:30pm Last Chance For Questions

9/11 1:30 to2:30pm

Investor PresentationMentor Assessment

2:45 to4:00pm

Mock Judging, Regional Awards, Global Forum


Session 2: Alternative Sources of Funding: Grants

2:45pm – 4:00pm, PDT

• Cleantech entrepreneur• Designer• Recipient of 3 DOE grants

Speaker: John Breshears President at Architectural Applications

finding and securing grant support – some hints and tips for non-dilutive funding

john breshears, president & ceo

architectural applications

July 30, 2013

introduction

what we do

target markets

investment

founded

headquarters

architectural applications, inc.product developmentintellectual property licensinghigh performance buildings consulting

commercial & residential building owners & operators

$1.8M to date

2011, C-corporation

Portland, OR

team

the opportunity: global population

>50%

team

the opportunity: electricity used for building a/c

50%

41%

32%

solution

large-scale,

membrane-based

exchangers

funding history

us department of energy, advanced research projects – energy (arpa-e)proof-of-concept grant2010-2011, 12 months, $458,265 +

us department of energy, small business technology transfer grant, phase 1 (sttr)technical feasiblity grant2011-2012, 9 months, $99,979

us department of energy, small business technology transfer grant, phase 2 (sttr)development & demonstration grant2012-2014, 24 months, $937,833 +

grant /grant/

A sum of money given by an organization, esp. a government, for a particular purpose.

whatfunding and other types of support

typically does need to be repaid

usually non-diluting capital

frequently few or no IP rights compromised (need to verify)

grants vs. cooperative agreements

team

whymission-driven

philanthropic

indirect goals-driven

team

wherefederal government

state & local governments

utilities

non-profits

foreign governments

team

howidentifying

proposing

executing

team

identifying

team

locating opportunities that fit with your product

all-agency federal database:grants.gov

looking directly at individual federal agencies:

• advanced research projects – energy (arpa-e)

• energy efficiency & renewable energy

• electricity delivery & energy reliability

• nuclear energy

department of energy:

department of energy:https://arpa-e-foa.energy.gov

department of energy:

http://www1.eere.energy.gov/buildings/technologies/index.html

department of defense:

• many branches : army, navy, air force, darpa, etc.

• largest agency budget most grant opportunities

• own customer

• multiple layers of administration

• award process tends to take time

department of defense:http://www.defenseinnovationmarketplace.mil/RIF.html

national science foundationenvironmental protection agencydepartment of agriculturedepartment of the interiornational aeronautics & space agency

other agencies:

sbir - small business innovation research (small business only)

sttr - small business technology transfer (small business with research institution)

small business administration:

sbir / sttr:

• set-aside required of every federally-funded agency

(% of budget DEDICATED to funding r&d by small businesses)

• administered jointly through sba and agency

• granting agencies vs. contract agencies

sbir / sttr:http://www.acq.osd.mil/osbp/sbir/

sbir / sttr:

• each agency issues 2-3 funding calls annually

• must begin with phase I

• topics are released in advance

• typically a q & a period during which program managers can be approached for discussion/clarification

• once the formal call for proposals is issued, no further communication with pm’s is permitted

sbir / sttr: topics example

Phase 1: establish technical merit, feasibility, commercial potential

6-9 months, $100,000 – $150,000


2 years (max.), $1,000,000 (max.)


6-9 months, $100,000 – $150,000


2 years (max.), $1,000,000 (max.)

sbir / sttr: topics example

sbir / sttr: 3-phase sequence


6-9 months, $100,000 – $150,000


2 years (max.), $1,000,000 (max.)

phase 1

feasiblity,proof-of-concept

6-9 months$100-150k

phase 2

phase 3

full r&d

24 months$1M (max) demonstration,

commercialization

tbdnon-sbir gov’t. funds

locating – non-federal sources

• state governmentse.g. california energy commission (cec)

new york state energy r & d authority (nyserda)

• utilities

• incubator/accelerator organizations

• economic development organizations

• non-profits

• foreign governments e.g. singapore, china, & others

questions so far….?

proposing

team

proposing

team

• project work scope

• project schedule

• project budget

• project team

proposing: prerequisites

team

necessary steps may include:

• dunn & bradstreet number

• registration on specialized web portals(e.g. fedconnect, fedbizopps, etc.)

• demonstrating accounting or other compliance

project work scope

team

• what is the technology?

• how will this work further the grantor’s mission?

• what, exactly, will you accomplish with the funding?

crystal clear – project objectivesmilestones

(measurable goals)deliverablespotential risks &

mitigations

• remaining steps to achieve goal

project work scope

team

• what is the technology?

• how will this work further the grantor’s mission?

• what, exactly, will you accomplish with the funding?

• remaining steps to achieve goal

project work scope

team

Organize your project into a hierarchical structure:

I. objective (goal)

A. milestone(s) = measurable outcome (did you achieve it?)

1. task(s) = steps necessary to achieve the milestone

a. processb. challengesc. risks & mitigationsd. deliverables

project work plan

team

project work plan

team

project work plan

team

Task 2a - Exchanger Fabrication for Lab Test Challenges:Xxxxxxxxxxxx

Process:Xxxxxxxxxxxxxxxx

Risks & Mitigation:

Deliverables:Documented experiment plan for exchanger testing in the MoWiTT facilityDocumented experiment plan for exchanger testing in the AWTF & FLEX facilitiesInstalled, instrumented, and calibrated systems for the MoWiTT and AWTF/FLEX experiments

R1. Misfits between core-housing-test chamber.

M1. Coordinate all production and installation through single contact person.

R2. Air leakage in experimental set up. M2. Pre-inspect apparatus & lab equipment & gasket liberally during assembly.

project budget

team

• typically must allocate all requested funds

• rules for how the funding may be used and by whom

• overhead rates – why they are important

• cost share - frequently 20-50% of total project cost- may be supplied as in-kind

services - documented as letter of

commitment in proposal

• profit / fee - allowed in SBIR/STTR proposals

• budget preparation can be complex and time consuming

project team

team

• assemble the most best team – look for expertise

• federal grantors often prefer diverse teams:• small business• universities• national laboratories (FFRDC)• large corporations

• state and local agencies are often biased toward

local proposals

questions so far….?

executing

team

points to bear in mind:

team

• reporting requirements – technical progress, financial progress, other

• accounting methods & procedures

• potential audits

• communication with program managers • positioning for next steps

hints for success:

team

• learn about opportunities early

• ask questions, learn as much as possible

• follow the proposal directions to the letter

• allow at least as much time to complete budget portions and work scope portions

• learn from examples of successful proposals

• consider hiring a professional

• be aware of funding timetable (months until $ arrive)

resources for success:

team

• arpa-e university webinar series:http://arpa-e.energy.gov/?q=arpa-e-site-page/arpa-e-university

• sbir / sttr website:http://www.sbir.gov

• greenwood consulting blog:http://www.g-jgreenwood.com

• federal omnibus database (grants.gov):grants.gov

• newsletters, networks, connections

questions?

Session 2 Q&A

Reminders


Reminders

• Work on your worksheets – keep up each week, it will make it easier

• Complete webinar survey you will automatically receive from Webex – we want your feedback

• Next webinar is Tuesday, August 6th– Check your Accelerator wiki

http://wiki.cleantechopen.com/accelerator-wiki/2013-webinars/ for updates on webinars

– Session 1: Financial Analysis & Planning - 1:30pm to 2:30pm, PDT• Speaker: Niraj Kohli, President, CSC• Be sure to send in your top 3 expectations you have for the next

worksheet webinar. Link is in the August 3rd Session 1 webinar– Session 2: IP Licensing from Third Parties - 2:45pm-4:00pm, PDT

http://wiki.cleantechopen.com/accelerator-wiki/2013-webinars/