September 5, 2013 Growing Missouri’s Economy Through Innovation and Entrepreneurship

Cameron Cushman Manager of Entrepreneurship Ewing Marion Kauffman Foundation

“Foster a society of economically independent individuals who are engaged citizens, contributing to the improvement of their communities."

“Every individual that we can inspire, that we can guide, that we can help start a new company, is vital to the future of our economic welfare.” - Ewing Kauffman Democratizing Entrepreneurship

 Public-private partnership created by the Missouri General Assembly to lead efforts to promote entrepreneurship and foster the growth of new and emerging high-tech companies  Focus on 21 st Century bioscience industries related to Missouri’s rich history in agriculture  Board of Directors includes individuals appointed by Missouri’s Governor, Speaker of the House, and President Pro Tem of the Senate, and includes the President of the University of Missouri system and the Director of the Department of Economic Development About MTC

 Missouri Building Entrepreneurial Capacity Program (MOBEC)  Through the MOBEC program, MTC makes strategic investments in non-profits that expand the support system for entrepreneurs that are commercializing new technologies or that enhance the capacity of Missouri to grow its innovation economy  IDEA Fund  The IDEA Fund promotes the formation and growth of businesses that engage in the transfer of science and technology into job creation MTC Support Programs

 Animal Health  Applied Engineering  Biomedical Science  Defense and Homeland Security  Plant Science MTC Areas of Focus

 Digital and convergence media  Information technology  Creative content  Clean energy  Advanced manufacturing MTC Area of Focus – Applied Engineering

Missouri IDEA Funds

On March 22, 2011, Missouri Governor Jay Nixon announced the launch of the $21 million IDEA Seed and Venture Capital Funds initiative that will support the growth of entrepreneurs and high-tech companies.  7 competitive funding rounds completed  219 applications submitted  $131 million in co-investment funds requested  77 authorized projects totaling $20.4 million in IDEA Funds  Nearly 40 companies closed and funded in excess of $11 million raising leveraged capital in excess of $50 million

 Missouri TechLaunch  Seed Capital Co-Investment Program  Venture Capital Co-Investment Program  High-Tech Industrial Expansion Program IDEA Seed and Venture Capital Funds

 Pre-Seed Stage Financing  Accelerate the commercialization of research discoveries  Experienced Leadership  Industry/Technology  Commercialization  Matching Funds  At least 100%  Close and Transfer in a Syndicate  Viable Plan for Follow-On Financing or Sustainability Missouri TechLaunch Eligibility

 Funds may be used for IP development and evaluation  proof of concept work  prototype design  market studies  related business activities  Typically issued as convertible debt Missouri TechLaunch Awards

 Seed Stage Financing  Accelerate the commercialization of research discoveries and growth of start-up companies  Experienced Leadership  Industry/Technology  Commercialization  Matching Funds  At least 100%  Close and Transfer in a Syndicate  Viable Plan for Follow-On Financing or Sustainability Seed Capital Co-Investment Eligibility

 Funds may be used for advanced IP development and evaluation  proof of concept work  prototype design  market studies  key personnel hiring  related business activities  Typically issued as convertible debt or equity Seed Capital Co-Investment Awards

 Venture Capital Stage Financing  Accelerate the growth of start-up companies that can be new Missouri-based corporate headquarters  Experienced Leadership  Industry/Technology  Commercialization  Matching Funds  At least 100%  Close and Transfer in a Syndicate  Viable Plan for Follow-On Financing or Sustainability Venture Capital Co-Investment Eligibility

 Funds may be used for advanced IP development and evaluation  proof of concept work  prototype design  market studies  key personnel hiring  related business activities  Typically issued as equity Venture Capital Co-Investment Awards

 Funds may be used for business expansion activities  equipment  construction  key personnel hiring  related business activities  Typically issued as secured low-interest debt High-Tech Industrial Expansion Awards

 Minimum of 1:1 cash match of new, private investment  Neither federal funds or in-kind contributions can be used as match to IDEA Funds  Matching funds to close in syndication with MTC investment Matching Funds

MTC Investment Review Process Application Preliminary Staff Review Due Diligence and Scoring Investment Committee Review Highest-ranked Applications Reviewed by Investment Committee (unless exigent circumstances) Funding Recommendations Issued MTC Board Review Board Considers Recommendations Final Due Diligence and Definitive Documents Tracking Outcomes Awardees Report Outcomes for 10 years Contract Compliance Outcomes Monitored by Investment Committee

Missouri Building Entrepreneurial Capacity MOBEC

 Enhance the capacity of organizations to support entrepreneurs who are commercializing new technologies around which high-growth companies can be created  Enhance the capacity of Missouri research institutions to attract competitive federal and private research funding and centers  Enhance research and commercialization efforts in the targeted high- tech industry clusters of animal health, plant science, biomedical science, applied engineering and defense and homeland security; and  Create sustainable high-paying, private sector jobs.

 Eligibility  Non-profit entrepreneurial support and related organizations  Public or private non-profit Missouri research institutions- Including institutions of higher education  Matching Funds  MOBEC grant funds should be matched by other non-state funding sources

ARCH GRANTS IT ENTREPRENEUR NETWORK Arch Grants awards $50,000 grants to entrepreneurs each year. Who will relocate to St. Louis for one year Year two of the program received over 700 applications from start-ups in 39 states and 15 countries across the globe. MOBEC funds used for program administration ITEN has served over 220 start-up companies through its network of more than 70 private-sector mentors Companies assisted by ITEN have raised over $70 million in financing MOBEC funds used for program administration

MERCY RESEARCH AND DEVELOPMENT MISSOURI INNOVATION CENTER Research & development focused on bridging the gap between doctors and patients to create better medical devices and improved treatment procedures, eventually leading to higher quality of care for patients. MOBEC funds used to help commercialize new products MIC operates the MU Life Science Business Incubator at Monsanto Place, which offers biomedical and life science wet labs and engineering suites for startup companies. MOBEC funds used to build additional wet lab space