1. INDUSTRIAL INNOVATION PARTNERSHIPS DISCOVERY TO INNOVATION Phase IIB Funding the Gap Division of Industrial Innovation and Partnerships (IIP) Errol Arkilic, Ph.D. earkilic@nsf.gov Phase II Grantees Conference

3. DISCOVERY TO INNOVATION 3 Phase IIB Details http://www.nsf.gov/eng/iip/sbir/phase_iib.jsp Matching program (2:1) to help bridge the gap –Minimum third party funding $100K ($50K additional from NSF) –Maximum NSF support $500K NSF metric of success Requires REAL 3 rd -party funds –Equity, sales, contract revenue, some state programs, other –No in-kind, No debt, No voodoo Open submission (no closing dates) – NEW Window of opportunity defined by grant start and end dates –See award email Requires support from your program manager/champion –Internal review by NSF IIP staff Two types: –Under $250K from NSF – No presentation at NSF –Over $250K from NSF (Supersize) – Requires presentation at NSF

4. DISCOVERY TO INNOVATION 4 Phase IIB Process - NEW Deadline: 30 days prior to IIB proposal submission –Strongly encouraged to start the dialog 90 days out! –Written authorization from PM to proceed required At the time of supplemental request –Original Phase II grant MUST NOT be expired No Cost Extension precludes Phase IIB support –Entire funding package must be fully-executed Phase IIB is not a foregone conclusion –3 rd Party funding is necessary but not sufficient condition –NSF is declining a higher percentage of Phase IIBs

5. DISCOVERY TO INNOVATION 5 Supersize Phase IIB Presentation (Request > than $250K from NSF) Scheduled at NSF by your PM –You, senior management, your partner, NSF program staff 1.5 – 2 hour presentation –Outline provided In-depth review of enterprise strategy –Very high information content –Window into your company

6. DISCOVERY TO INNOVATION 6 Issues that have come up in the presentation Finance package unravels Ineffective corporate governance Excessively-complex corporate structure Lack of corporate focus Unarticulated ROI Unbalanced equity distribution Negative impacts of some forms of financing

7. DISCOVERY TO INNOVATION 7 Phase IIB Hints Start the dialog at least 90 days from planned proposal submission Would you have received this funding if the Phase II funding had not been received? How much of this funding is directly attributable to the Phase II effort? All deals are unique Communicate with you program manager in advance, get their buy-in