advancing system design technology asc SBIR: start-up funding and sustained growth A case study for “No Money Down: Raising Capital From Unconventional Sources”

222 advancing system design technology asc Early Stage Funding  No business plan, no VC funding  Credit card increased limits  SBIR Phase I contract $50K  SBIR Phase II contract $437K Home office University as development partner  Founders equity with minimum cash

333 advancing system design technology asc SBIR funds initial development  Prove feasibility of innovation in Phase I  Fund prototype development in Phase II  Phase III requires non-SBIR funding Government programs Private equity Industrial partnerships

444 advancing system design technology asc Converting Liabilities to Profit  We had no marketing or sales resources  Engineers lacked marketing experience  No independent quality assurance program  Large company missed a product opportunity   There was a match, so a deal was made …  Prepaid royalty in exchange for 3-year exclusive  30% royalty for our part of OEM sales  We retained rights to design translator products  Renewed OEM contract without exclusive clause

555 advancing system design technology asc Parlayed SBIR Opportunities  Low power challenge exceeded scope of single agency SBIR Phase I and II awards 3 agencies awarded 4 SBIR contracts  Needed capital to complete development Did not match VC investment guidelines Banks increased credit lines in stages Applied power synthesis concepts to radiation hardening architecture for more SBIR awards

666 advancing system design technology asc Crossroads To Opportunity  Sell technology rights Test insertion ALF library compiler  Organize by product Design Translation Radiation hardening by design Block level library characterization  Form new company for Low Power