MTI Development Award Program

405 WATER STREET, SUITE 300GARDINER, ME 04345

207.582.4790

Development Award Program


Corporate R&D:

$50,000 to $500,000

per application

Tech Transfer

R&D: $30,000 to $100,000

per application

Awarded 3 times per

year

Later-stage R&D

projects leading to

commercialization

Clynk, Portland - Developed a faster, cleaner, and more convenient service to recycle bottles and cans

Hydro International, Portland - Developed new

storm water system, exporting to New Zealand and elsewhere.

Kenway Corporation, Augusta - Diversifying into marine markets, including

U.S. military projects.

Corporate R&D:

$50,000 to $500,000 per application

Tech Transfer R&D:

$30,000 to $100,000 per application

REQUIRE AT LEAST A 1:1 MATCH FROM THE APPLICANT

Award Made

R&D Effort(no interest)

YEAR

2

After 3 years the unpaid balance will increase by 30% (balloon interest) and subsequently by 10% compounded annually. The agreement requires a minimum payment of 2% of gross sales from the product or process developed (applied directly to the principal).

0 1 3 4 5 6 7

Commercialization

Repayment within 3 years after commercialization – no interest.

8 9 10

3rd anniversary date of commercialization 30% (balloon interest) of unpaid balance

Post Commercialization - Full payback required by year seven.

The 10% interest will be calculated on

each anniversary date.

Timeline may vary

Repayment Requirements


Pre-application

(not mandatory)

Receipt of Applications

Complete Applications reviewed by

Peer Reviewers

Technology Board Review

Committee (TBRC)

Meeting and Evaluation

Invited Applicants Interviewed by the

Development Award Review

Committee

Strongest Projects

Recommended to MTI Board for Funding

Process Outline


Process TimelineAward Cycle Activity

November 5, 2010Applications (paper copy received) due at MTI by 5:00 PM (EST). Late submissions will not be accepted.

December 29, 2010 Written External Peer Reviews Due to MTI

January 12-14, 2011 Tech Board Review Committee (TBRC) Meetings

January 28, 2011Notification of those going/not going forward in process based on results of the Tech Board Recommendation. Additional written questions will be forwarded to applicants going forward in the process.

February 4, 2011 Written responses to Peer Reviewer and TBRC questions due from applicants going forward.

February 17, 2011Development Award Committee Interviews. Applicants should reserve this day on their calendars for potential interview invitation. MTI cannot accommodate scheduling conflicts of applicants.

March 4, 2011Notification of those going/not going forward in process based on results of the Interview Committee Recommendation.

March 14, 2011MTI Board of Directors (BOD) will review those recommended to go forward in the process based on the results of the interview recommendation.

March 15, 2011 MTI Board of Directors makes final award decisions. Applicants notified of results.


Evaluation Criteria

STEP ONE: Peer Reviewers - Scientific and Technical

Merit; up to 40 points maximum

20 points: Degree of innovation and competitiveness of the technology-based, product, service, or process

15 points: Quality of the scientific, technical and supporting resources

5 points: Likelihood of the project to result in significant intellectual property position


Evaluation Criteria

The American Association for the Advancement of

Science and MTI staff Will select qualified peerreviewers from within the technical and

commercialfield of the applications. Peer reviewers will

performthe scientific and technical evaluation and

providea brief summary statement for each application,indicating its strengths and weaknesses.


http://www.aaas.org/

http://www.aaas.org/

STEP TWO: The Technology Board ReviewCommittee (TBRC) Evaluation Volunteertechnical/business advisors will evaluate applications using MTI’s Development Awardevaluation criteria and determine which projectsBest meet MTI’s objectives.


Evaluation Criteria

• Advanced Technologies for Forestry & Agriculture• Aquaculture and Marine Technology• Biotechnology• Composite Materials Technology• Precision Manufacturing Technology

• Environmental Technology• Information Technology

Technology Sectors

Section 1: Potential Economic Impact in Maine; up

to 40 points maximum 10 points: Depth of interest by targeted

commercial/industrial market. 10 points: Growth potential for the

technology-based product, service, or process. 10 points: Potential for high revenue per

retained or new employees in Maine. 10 points: Quality and feasibility of the

financial projections and sustainability of the business commercial model.


Evaluation Criteria

Evaluation Criteria

Section 2: CEO and Management TeamCapability, Capacity, Self Assessment and Plan;up to 20 points max

5 points: Applicable experience, both technology/product, targeted industry/market and negotiating of strategic alliances, major customer contracts and licensing agreements.

5 points: Capability related to business stage and size, experience with planning, operations, recruiting, financial including prior profit and loss responsibility and securing of capital.


Evaluation Criteria

Section 2 Continued: CEO & Management Team

5 points: Self-assessment and plan for improvement, as required including any prior or planned attendance at applicable management training seminars and courses.

5 points: Plans to draw on advice and expertise through coaching, mentoring, and technology and/or business boards. Please list permanent advisors and board members including the CEO and management team’s relationship with these individuals and how they were selected. Is their commitment formalized in a written and/or compensated way?


Evaluation CriteriaSTEP THREE: Highest quality applications

willparticipate in interviews

15-minute presentation with submission of written

responses to questions raised in the review to date

15 minutes of questions and answers Remember: This is the first time the

applicant has the opportunity to answer questions raised during the review.

Anticipate obvious questions and account for them in the proposal.


Evaluation CriteriaSTEP FOUR: Recommendations and Award Decisions

The funding recommendation will be communicated to the MTI Board of Directors for final consideration. The MTI Board of Directors will consider the highest quality applications recommended for funding across all sectors and make the final funding decision based on the reviews and recommendations of the peer reviewers, TBRC and the interview.


Application

Writing a good application is easier than you think.

Think positively, proactively: The application process can be very rewarding.

Base it on a quality business plan. Help ensure your success:

Follow directions and a logical process. Seek help from others when needed. Put in the time.


Ensure a “Best Effort” Application.

Base it on thorough research: What has been done or is in the works. What could work or compete in the future.

Test it among peers and professionals.Organize a team capable of undertaking the project.

Tips: • Do not work in a “silo.” • One can be too close to a project to be objective or clear. • Understand that external technical and scientific peer

review is a critical component of the MTI approval process.

Application


ApplicationEnsure a “Good Fit”

Know what the funder really wants: Read, reread the application. Research what MTI has funded before. Explore the background and ask questions. Consider whether the project is the best use

of time and resources.Tips: You’re a “technical sales person” with a product. Convince

the decision-makers of the value proposition. Be wary of irrational exuberance.


Application Challenges

Remember the Human Reviewers

Approach: Balance “save the world” vs. narrow focus to avoid doubt.Content: Balance too little information vs. too much that numbs.Claims: “Unsubstantiated” claims are just that.Organization and Format: Lead the reviewer down a path to avoid confusion.Writing Style: Pick a style and stick with it for readability.Balance the technical and marketing: Avoid jargon.Address obvious questions and weaknesses.


Comprehensive Project Plans: Set aside preparation time and take an approach with phased submission, if the entire project is too large.

Appeal for 3 Audiences: Technical, Maine Impact and Business

Matching Funds Tips: Make the most of equipment as “in kind.” Cash is king. Unpaid personnel time is also a match. Same rules apply to match funding that apply to MTI cash.



4-Month Lag Time between Application and Award: Hedge your bets. Expenses may begin on the submission date at your own risk.

Payback Feasibility Demonstration and Next Steps Discussion for Project Completion.



Application Objectives

SMART: Paint a Clear Picture

Specific: Be precise about the project. Measurable: Quantify the objectives. Achievable: Are you attempting too much? Realistic: Right people, money, equipment,

material, time? Timing: State clearly the objectives’ dates.

Tip: Keep “objectives” and “goals” distinct. Goals

tend to be less well defined and focus on the long term.


Public Knowledge:The summary will beincluded in the officialMTI DevelopmentAward press release ifthe project is funded.

First Impression: The Executive

Summarycan be the first thing areviewer sees.

Commercialization information is key to the success of the application and must be included. In addition, a summary of this information can be included in the application’s executive summary. This section includes details on: Company Profile CEO & Management Team Project Description/Tasks Commercialization Plan


Lessons Learned

Lessons Learned

Innovation Use examples to describe why this

technology is unique Discuss the technical modifications and why

if this is a transferred technology.

Quality of Resources Describe the personnel, assets including

plant and equipment, the match, and the utilization of these resources toward the development and research leading to commercialization.


Lessons Learned

Quality of Resources If the personnel and assets are not in place,

describe how and when you will install them.Tips:

Reviewers appreciate the self identification of weaknesses and strengths.

Address the possibility of change and that specific skills may not be there.

The applicant’s ability to self-identify expertise gaps and outline plans to address gaps will be strongly considered in the review process.


The best commercialization plans demonstrate a clear

understanding of the market and identification of theImportant factors needed to achieve sales.

Competition: direct and indirect Direct applications Entry points, areas of incremental improvement for

future revenues Product life cycle Plan to implement a model to establish and maintain

market position Pricing, targeting, identification of first customers

Lessons Learned


Tip: More proposals are weak in demonstrating an immediate market need than in any other aspect.

Link the milestone chart to the project description and tasks.

Assure that milestones revolve around major go- and no-go decisions.

Define very clearly the deliverables and desired results.

Be realistic: Do not stretch or squeeze timelines.

Tips: Arithmetic counts - Construct the milestone chartto run consecutively and not concurrently. This willrequire detailed task and cost mapping vs. time.

Lessons Learned – Form B


Example Gantt Chart to help determine cost of tasks in Form B

$

Milestone #1

$ $

Milestone #2 Milestone #3

TASK

TIME

Determine cost of

tasks within each

milestone. A

B

C

D

$10 K

$20 K

$40 K

$5 K

$30 K

$50 K

$40 K

$30 K


Assure that the revenue projections agree with the assumptions as detailed in the project description.

Consider decreased costs, which are not utilized much in new products, but might be realized in the years following commercialization.

Assure that the capital raised or invested agrees with the business strategy described in the project description.

Lessons Learned – Form C


Differentiate clearly the number of new jobs vs. retained and the average salary.

Tips: Pick a time frame that is believable, defensible.

Remember to include 1 page of key assumptions(required).

Lessons Learned – Form C Continued


Construct realistic hourly rates (based on actual pay rates or use the Bureau of Labor Standards website). MTI does not have a set rate for consultant/contractor services. However, a reasonable rate is expected

Capital expenditure such as buildings or production equipment will only be considered when the purchase is necessary and primarily intended for the project.

Lessons Learned – Form D


Tip: Optional 2 additional pages - to justify any budget cost that may seem unusual (indirect costs, purchase price agreements.)

Projects may begin the proposed scope of work on the Development Award submission deadline date. Pre-award expenditures are at the applicant’s risk.

20% or less of MTI funding and project budget are allowed for indirect costs and 15% or less is allowed for sales and marketing.

MTI funds cannot be used to recoup sunk costs incurred prior to the submission deadline and these costs may not be recovered or used as match for the MTI Project.

Lessons Learned – Form D


Lessons Learned – FormsForm E

Consumer credit authorization form (two pages) .

No credit checks on those companies whose proposal is not forwarded to the interview.

Consumer credit reports are required on both the companies and primary principals of companies approved for MTI funding (definition: a primary principal is any person having an ownership interest in the company of twenty percent (20%) or more.)


Lessons Learned – Forms

Form F List all Patents, Copyrights, Trademarks,

Trade Secrets, or any other intellectual property.

Form G Recipient must begin repayment of the

Development Award within one year of successful commercialization (as defined in Section 11.1 of the Agreement).


Lessons Learned – Other

Personnel biographies 2 pages each Required for all key personnel, consultants

and contractors Be sure that each indicates the

experience relevant to the project.


Lessons Learned – Other Commitment letters

Letters must account for all items for cash match, in-kind match, partnerships, contractors and consultants.

Match must be secured within 6 months of award.

Tips: This is an opportunity for the supporter toelaborate on the commitment in time or moneywith key proposal points. Letterhead with

signaturesis preferred over email.



Supporting Documentation Optional, but can be critical. Up to 8 pages Contents: market data, letters from experts

in the field, partners, collaborators, suppliers, potential customers.

Be sure that each indicates the experience relevant to the project.



Tips Supporting documents can be the

strongest components of An application. Particularly strong are those from credible,

recognizable collaborators and customers.

Help write the letter if it is not compelling enough. Cookie-cutter letters are weak and unconvincing.


Suggested Next StepsDownload and read the Development Award Request for Application. http://www.mainetechnology.org/

As you read, think about:What is your product or technology?To which targeted sector does your technology fit best?What is the current stage of development?What is the Scope of Work contained in the Application?How will Maine benefit from the successful completion of your project?Approximately how much money will be requested from MTI?


Pathway to an award1. Submit a non-confidential summary.2. Participate in a discussion with MTI staff

and attend a workshop.3. Download a copy of the Request for

Application (RFA). 4. Register online (Form A).5. Prepare, proofread, and submit an

application.6. Receive word of an award decision

rendered by MTI committees.


MTI TeamBetsy Biemann, PresidentLinda Adams, Program AssistantShane Beckim, Seed Grant SpecialistRoger Brooks, Commercialization SupportJim Fecteau, Finance & Administration ManagerJessie Gogan, Development Award SpecialistJoe Migliaccio, Manager, Business Innovation ProgramsAndrea Phillips, Office ManagerPatti Sutter, Program Assistant

Deb Cook, Consultant, CommunicationsMartha Bentley, Consultant, MTI Bond ProgramsScott Stefanski, Consultant, Cluster Initiative ProgramKaren West, Consultant, SBIR/STTR Programs


Open Questions?

helps to CREATE and sustain high-paying JOBS in existing and new companies

405 WATER STREET, SUITE 300GARDINER, ME 04345

207.582.4790

MTI Development Award Program

Documents

award maderepayment

post commercialization

peer reviewers scientific

mti board

degree of innovation

gross sales

rd effortno interesttimeline

minimum payment