The Research Triangle Regional Partnership hosts a weekly radio show on its competitiveness strategy, "Staying on Top: Winning the Job Wars of the Future."
In RTRP's latest interview (WMA file), NC IDEA's Dave Rizzo talks about recent grants to early-stage companies in the region.
Rizzo, a member of CED's Board of Directors, emphasizes the important role that high-growth entrepreneurial companies play in the economy.
NC IDEA is currently seeking grant applications from North Carolina entrepreneurs and early-stage companies focused on information technology, medical devices or material sciences. The initial “pre-proposal� applications must be submitted online by Sept. 15.
NC IDEA plans to award $150,000 “proof of concept� grants to help bridge the gap between innovative ideas and venture capital funding. The grants are designed to prepare companies for equity funding, accelerating the creation of new North Carolina companies and jobs. Grants of up to $50,000 per company will be awarded in December.
The grants support business activities that validate potential markets, reduce business risks, and advance projects to the point at which they are suitable for consideration by private equity investors. Preference is given to companies that have not previously received equity financing. An entrepreneur who has not formed a company may apply, but company incorporation is required prior to the awarding of grant funding.
Many new technologies are not successfully transferred out of universities and research institutions because of a funding gap between government and private equity support. Research funding typically does not include support for business development activities or development of product prototypes. Yet, venture capital funds typically do not invest in companies until they have a product and are already generating revenues from customer sales.
The NC IDEA grant program provides a novel source of assistance to bridge this gap. Earlier this year, NC IDEA awarded $225,000 in grants to seven early-stage North Carolina companies.
"NC IDEA’s grant program offers young pre-venture companies an opportunity that can't be found elsewhere," said Josh Whiton, chief executive officer of TransLoc, which received an NC IDEA grant in the previous cycle earlier this year. Dr. Nimmi Ramanujam, a professor at Duke and project manager for previous grant recipient Illuminus, agreed. “There are no other sources of early funding that can be sought to address these issues,� she said.
In addition to funding, NC IDEA and its strategic partners facilitate access to business and technology leaders who will mentor and guide entrepreneurs to help them overcome research, product development, sales and product adoption hurdles. NC IDEA collaborates with CED, The North Carolina Technology Association (NCTA), the North Carolina Small Business and Technology Development Center (SBTDC) and Southeast TechInventures.
Approximately 12 to 15 companies submitting “pre-proposal� submissions will be selected to participate in a subsequent full proposal submission and review period from Sept. 15 through Oct. 27. This process will include submission of a more in-depth proposal and prioritized budget for use of grant proceeds, and potentially a presentation from the company to a NC IDEA Grants Program advisory committee.