Proposal: BioDistrict New Orleans Super-Regional i6 Challenge

What is the i6 Challenge? Multi-agency grant that encourages and rewards innovative, groundbreaking ideas that accelerate technology commercialization, new venture formation, job creation, and economic growth across the U.S. This is the third year in which grants are being received. Led by the U.S. Department of Commerce (DOC) and its Economic Development Administration (EDA) - Use a multistage process to review proposals and select one winning project in each of the 6 regions - Merit review by EDA - Peer review by NSF (National Science Foundation) and eligibility for additional NSF SBIR awards - Selection review by a joint committee of senior officials from Commerce, NIH (National Institutes of Health), and NSF Applicants are encouraged to create and expand Proof of Concept Centers (POC)1 to: accelerate entrepreneurial thinking among innovators and researchers; create quality entrepreneurs and startup companies; develop a network of experts to support entrepreneurs and new ventures; and spark future job creation and economic growth across the United States. The winning plan will address how the lead applicant for the Proof of Concept Center will engage partnering organizations and the roles these resources will contribute in new and innovative ways to form or expand a Proof of Concept Center. Targets sections of the research-to-development ecosystem that are in need of additional support Encourages collaboration among various stakeholders: o o o o o
1

Universities and community colleges Investors (for example, venture capitalists and angel investors); Incubators and Accelerators; Organizations of successful entrepreneurs and business leaders; Federal research labs;

Proof of Concept Centers (POC) in general, are recognized by tech transfer and ED professionals as being an additional element of the ecosystem that compliments the programming of an incubator, accelerator, and similar physical entrepreneurial centers. A genuine POC center/program combines a number of these commercialization activities not just lab space, funding, or mentoring that provide emerging researchers with the earliest stages support to continue IP development. It is not restricted to university driven research but includes Federal labs and privately funded investigators.

o o o o o o o o o o o

Sector/Subject matter - experts (SMEs) within their communities and regions; Industry partners; Small business development centers; Manufacturing Extension Partnership centers (NIST); Technology-based economic development organizations; Economic Development Organizations; Political Subdivisions with geographical limitation; Philanthropic organizations; Foreign Trade Organizations; Export promotion organizations; and Other non-profit organizations.

Generally, costs that are allowable include salaries, supplies, and other expenses that are reasonable and necessary for the completion of the scope of work. Please note that funding provided under this competition will not support construction activities and generally may only support equipment purchases incidental to the total scope of work. In addition, when developing a proposal, it is important that applicants keep in mind the potential to access future supplemental funds, such as Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) grants from other Federal agencies. Therefore, applicants may wish to partner with multiple stakeholders in order to maximize and leverage potential available funding. Applicants are also encouraged to consider how the proposed Proof of Concept center and its network can help its clients take advantage of innovative seed financing tools such as the new forms of crowd funding enabled by the recently enacted Jumpstart Our Business Startups (JOBS) Act (Public Law 112-106). To be eligible under the i6 Challenge, a proposed project must focus on one or more of the following project outputs: 1) Innovation: Projects that nurture innovation broadly, and market-based applications for that innovation specifically, through the: a. Creation of a broad-based, expansive culture of idea generation and the useful application of that innovation, research and development at universities and research centers; b. Engagement of a diverse set of researchers, innovators and practitioners and industry practitioners with a cross section of intellectual approach, innovation, background or experience; and c. Engagement with industry professionals, investors and successful entrepreneurs with innovation at its earliest stages to create the best climate, team and opportunities for an emerging high-growth startup.

2) Entrepreneurship: Projects that develop a large number of high-growth entrepreneurs across disciplines and create an ecosystem for those entrepreneurs to experiment and commercialize their innovation, as determined by: a. Supporting educational programs to prepare students and researchers for entrepreneurial challenges and work environments; and b. Growth of the ecosystem to ensure a steady stream of high-growth startups to drive job and value creation in the home region. 3) Regional Economic Development: Projects that drive economic development through the lens of innovation and entrepreneurship, as defined by: a. The presence of special events to showcase technologies and entrepreneurs, promote the exchange of ideas, and the formation of new collaboration. b. Engagement with local business associations and government to ensure that high growth entrepreneurs become part of the local business community, and that their growing needs are addressed by business associations and government officials. 4) Commercialization of Research: Projects that convert ideas, research or prototypes into viable products and services that can be monetized and brought to market in a financially manageable and rapid manner, as defined by: a. Incorporation of mentors and industry catalysts that provide advisory services and link technology and researchers to external networks; b. Access to seed funding to support the commercialization of promising research through networks created by the organization or outside funding networks and tools; c. Assistance with market evaluation and business plan development; and d. Creation of processes that integrate scientific review with market potential to greatly accelerate the best ideas to market. How can the BioDistrict New Orleans Super-Region i6 Project win the grant? Collaboration and partnering with other organizations The project will have several partners as Co-Applicants, including BioDistrict New Orleans as the regional governmental authority tasked as the coordinating entity, which 3

will serve as Grant Leader. Other Co-Applicants will include qualified non-profits, universities, research centers, incubators, industry (as described on Pages 1 and 2 above), and select Innovation Candidates, who have established relationship with one or more of the Co-Applicant(s) In order to prepare the initial application, the BioDistrict is currently seeking to identity CoApplicants and select Innovation Candidates (as defined below on Page 5) by posting the proposal to the BioDistrict website, newsletter and distributing to known potential Co-Applicants and Partners: - This solicitation will allow for potential Co-Applicants to submit questions - Interested Co-Applicants will then participate in the preparation and submission of the grant proposal; simultaneously, - BioDistrict will review applications to determine which candidates are best positioned for commercialization and entrance into the BioDistrict Super Regional i6 project What are the objectives of the BioDistrict Super-Regional i6 Project? To substantially increase the number of early-stage technology innovations that enter the regional commercialization pipeline and whose commercial viability is demonstrated and validated for 3rd party funding and business launch

Project Description Create a more robust pipeline of new bioscience ventures in Louisianas Southeast SuperRegion, ventures that can grow into significant employers in the future (increasing economic opportunities, including job and supply chain growth) Employ rigorous commercialization methods to be overseen by industry experts that will identify innovations with the most promising commercial potential Upon Grant award of the 2 year project BioDistrict will form a Co-Applicants Project Core Team to implement a 3-phase competitive cycle to validate innovations: 1. Phase A: Project Core Team solicits applications from Co-Applicants, research institutions, Partners, industry and other sources of technology suitable for new business creation. Project will narrow the field to ~40 candidates - Candidates chosen by reviewing the scientific underpinning of each project, projecting the market, anticipating the hurdles to new venture formation

2. Phase B: Project Core Team will narrow field further to less than 15 innovations by engaging industry experts that can validate the science and the market potential of each commercialization candidate - A priority for the EDA funding is a Proof of Concept Center, which bring a culture of innovation and high-growth entrepreneurship to distressed regions and\or universities where entrepreneurism and technology commercialization is deficient. - Particularly strong applicants that lack sufficient business expertise may have the Project recruit entrepreneurial Innovation Champions (serve as CEO) to advance technologies and develop research and action plans 3. Phase C: Project Core Team will trigger funding and execution of detailed action plans for each remaining innovation - Action plans: dictate the market assessments, lab experiments, and/or prototype development necessary to meet milestones for advancing the innovation - At end of Phase C, Project with produce 3-5 viable new bioscience ventures Who are the potential Innovation Candidates for selection? Technologies or business concepts from service-based companies, universities, research institutions, entrepreneurs, or individuals Innovations in the defined area of bioscience, including areas such as human health therapies, diagnostics & devices, animal health, plant science, coastal restoration, digital imaging and e-health applications, bio & renewable energy, healthcare/bioscience service companies, mobile health, e-health, bioinformatics, medically related food products Targets earliest stage of entrepreneurs, emerging companies or technologies in the precompany phase whose commercialization concept is deemed of scientific and business merit, but generally is too early for a traditional private investment

Once the grant is awarded and an innovation is selected, what can the Innovation Candidates expect from the BioDistrict Super-Regional i6 Project? Anticipated $25K- $100K per funded project - Examples of appropriate use of funds: 1. Reagents and consumables 2. Laboratory equipment 3. Marketing analysis and business development 4. Corporate legal expenses 5. Corporate insurance

6. Lease costs for lab and offices 7. Consultants 8. Contractors and contract research organizations Possibly a capped compensation for the Innovation Champion

What should potential Co-Applicants and Innovation Candidates include in their application for the BioDistrict Super-Regional i6 Project? (3,000-word target) 1. Description of your role Proposed BioDistrict Super-Regional i6 Funded Project 2. General Description of Innovation - Background of concept, key individuals involved, primary research/commercial focus 3. Milestones and Decisions During Funded Period - Designate milestones and explain how success or failure will impact the future of the technology or company 4. Competitive Advantage - What problem are you seeking to solve? - How and why is it better than current and emerging products or services? 5. Detailed Budget 6. Intellectual Property Strategy - Explain inventor-ship and ownership of relevant intellectual property - List all relevant disclosures, patents, and patent application 7. Business Strategy Following Completion of BioDistrict Super-Regional i6 Project - Put the milestones on a timeline - Estimate when the next round of funding will be required for the company, and what sources will be targeted for that funding 8. Economic Development - Indicate the direct and indirect economic development impact for the proposed project - Direct: jobs, since regional high-tech job creation is a critical objective for the BioDistrict Super-Regional i6 Project - Indirect: use of regional vendors and service providers Applications are due July 13, 2012 at 2:00pm CDST in the BioDistrict Office. After applications are submitted, the BioDistrict will enter into a term sheet with Co-Applicants and Innovation Candidates that outlines the relationship between the Project and the Co-Applicants for the submission of the i6Challenge Grants to the EDA, which is due by July 20, 2012 at 11:59 pm. 6