Notice of Opportunity: FLORIDA ENERGY INVESTMENT INITIATIVES

TECHNOLOGICAL RESEARCH AND DEVELOPMENT AUTHORITY (TRDA)

Background

Under an agreement with the Florida Department of Community Affairs (DCA) the Technological Research and Development Authority (TRDA) administers the Florida Energy Investment Initiatives, Venture Smart Florida and Investment Initiative for Energy Technologies. These two entrepreneurial initiatives are designed to assist Florida companies secure private capital in their effort to develop and commercialize promising and innovative energy-related technologies, products and services. Both Venture Smart and Investment Initiative aim to transform promising, yet borderline investable, companies into attractive investment opportunities, by helping them overcome investor concerns.

Several federal, state and local programs provide useful resources and expertise to start-ups and small companies bridging the gaps between individual initiatives and market responses along the innovation-commercialization process. As company success presupposes sufficient levels of private capital investment, the success of such programs must stem from their ability to help companies become investable. However, at the time of the investment decision, companies presenting borderline opportunities to investors find little help in rectifying fixable problems and overcoming investor resistance--in most cases with all federal and state effort up to that point evaporating. It is at this critical moment that Venture Smart and Investment Initiative get involved in the market, helping companies and investors convert borderline investment decisions into appealing business opportunities.

The initiatives are unique because they leverage federal funds to help the State of Florida attract energy-related technologies, high tech-jobs, and capital investment, as well as avert the failure of high-potential Florida companies or their relocation to other states, through market-driven public-private partnerships. Venture Smart and Investment Initiative do not compete with the private sector as they forge lasting win-win partnerships with companies, investors, and service providers. They do not replicate other programs or services, rather they provide additional opportunities for them, and help safeguard their prior investment in companies that are promising yet unconvincing to investors.

·    Venture Smart Florida helps fix borderline investable companies or projects. It aims to alleviate the negative aspects of an investment deal by improving the applicant company's strategy, tactics, technical difficulties, management, business plan, or presentation—and so, directly addressing the investors’ concerns. Venture Smart shares the company’s cost in accessing the needed expertise: companies pay the initial 25% and Venture Smart pays the remaining 75% of the service provider costs. The company is responsible for identifying, screening, negotiating service agreements with, and selecting service providers, while TRDA maintains rights of refusal over the company’s choice. Eligible applications are evaluated by TRDA staff, an independent reviewer, and the Florida Energy Investment Committee. Applicants will be notified of the committee's decision and contracts will be negotiated with recipients within 30 days.

NOTE:  The Investment Initiative for Energy Technologies Fund is currently depleted, and no new awards will be granted.  The fund may be reopened at a future date.  If you are interested in being placed on a notification list for the fund's reopening, please send an email stating your desire to be notified to Dave Kershaw at dkershaw@trda.org.

Investment Initiative for Energy Technologies helps lower the risk of a company or a project to reluctant private investors. It brings out the positive aspects of an investment deal by making matched co-investments with other private capital investors who are willing to participate on a project, but are reluctant to go it alone. Companies must provide a 1:1 cash match from outside private co-investors. Award moneys are released to the recipient company on a matching basis with the paired outside co-investment dollars. The recipient company, or its successor, must repay a minimum of 3 times the award to the Investment Initiative fund (i.e., 5% of gross sales until 3 times repayment) to make additional awards possible in future years. Eligible applications are evaluated by TRDA staff, an independent reviewer, the Florida Energy Investment Committee, and the TRDA Board of Directors. Applicants have the option of presenting their application in person to the Energy Investment Committee and the TRDA Board of Directors. Applicants will be notified of the Board's decision within 60 days and contracts will be negotiated with recipients within 90 days.

Each of the programs will make awards totaling $612,000, with maximum funding for a selected project reaching up to $30,000 for Venture Smart and up to $150,000 for the Investment Initiative. The initiatives encourage applications from Florida companies located in Front Porch Florida communities and designated urban infill areas, as well as women and minority owned companies.

FLORIDA ENERGY INVESTMENT INITIATIVES -- APPLICATION GUIDELINES

Request for Proposals

The State of Florida's Technological Research and Development Authority (TRDA) invites participation in Venture Smart Florida and Investment Initiative for Energy Technologies from promising Florida high-tech companies.

This is a continuous open-ended announcement that permits companies to submit their proposed projects at any time. Projects will be considered upon submission. Awards will be made until program funds are depleted.

Eligibility Criteria (Applications must meet all of the following eligibility criteria to be considered)

·    Applicants must be Florida-based, for-profit, small[1], technology[2] firms.

·    Projects must have near term commercial application[3], be promising[4], protectable[5], energy-related[6] innovations, with specific capital requirements, having received favorable independent reviews and local community support[7].

·    Applicants must provide evidence that they have submitted their business plans to interested accredited investors and explain how TRDA program support will help overcome investor concerns.

·    Applicants must have their selected service provider pre-approved by TRDA [only for Venture Smart applicants]

Application Guidelines [one original for all items]

·    Completed Venture Smart or Investment Initiative Application Form

·    Company Business Plan [10 pages maximum, including one page executive summary]

·    Independent Documentation of:

-   Innovation's protectability (i.e., patents/copyrights/licenses granted or pending, etc.)

-   Innovation's potential (i.e., reports by independent labs, sales contracts, alliances, community support, etc.)

-   Interest from accredited investors (new capital investment) and their concerns (letters of support, phone calls)

-   Company incorporation papers, and if applicable, description with respect to location (Front Porch Florida community[8] or designated urban infill area[9]) or ownership (women –owned or minority-owned company)

-   Service provider agreement (qualifications, deliverables, deadlines, cost) [only for Venture Smart applicants]  

Selection Criteria

TRDA staff will review applications to determine eligibility. Applicants must satisfy all eligibility criteria. Companies will be normally notified of their eligibility within 14 days from submission. In cases where outside technical evaluation of a proposal is necessary to determine eligibility, determination may be delayed.  In this case, companies will be notified that their application was received, and that it is being evaluated.  Eligible companies will be advised on the status of their application within 30 days for Venture Smart, and 60 days for Investment Initiative.

Awards

Awards are subject to fund availability. This solicitation does not obligate TRDA to make any awards. Applicants incur pre-award costs at their own risk. TRDA requires regular progress reports and a final report. Reporting will mirror the project's negotiated deliverables.  Overall deadlines will be negotiated as part of the award contract.

Note: The burden of proof on fulfilling the above guidelines rests with the applicant. Applications become public records upon submission. TRDA will enter into non-disclosure agreements with applicants upon request.