Leveraging Kentucky Resources:Leveraging Kentucky Resources:How To Maximize The Benefits

Presented byGene FuquaqOffice of Commercialization & Innovation

May 31, 2012

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Putting the Pieces TogetherPutting the Pieces Together 

• Funding Programsg g• Infrastructure• Entrepreneurial Support Network

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Kentucky is ChangingKentucky is ChangingKentucky is ChangingKentucky is Changing

Entrepreneurial Activity Growth Rate 2008-2010 3rd fastestp y

Entrepreneurial Activity Growth Rate 2001-2010 5th fastest

Entrepreneurial Activity among all states in 2011 8th highest

Sources: 2011 State Entrepreneurial Index (University of Nebraska Lincoln)Sources: 2011 State Entrepreneurial Index (University of Nebraska-Lincoln)2011 Kauffman Entrepreneurial Activity Index

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HighHigh‐‐Tech Funding Tech Funding ProgramsProgramsgg gg gg

Kentucky employs both incentive basedKentucky employs both incentive-based economic development and technology-based economic development (TBED)

A range of TBED programs are available to start-up and early-stage ventures to cover each stage of their growth.

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SBIRSBIR‐‐STTR AssistanceSTTR AssistanceSBIRSBIR STTR AssistanceSTTR AssistanceK t k SBIR R C tKentucky SBIR Resource CenterHelps entrepreneurs in Kentucky succeed in the highly competitive federal SBIR-STTR grant programs

Offers complete start-to-finish assistance:• Matching research with the right federal agency• Training on proposal development• Post-award guidance and follow-upPost award guidance and follow up

For details, visit www.KySBIR.com

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SBIRSBIR‐‐STTR AssistanceSTTR AssistanceSBIRSBIR STTR AssistanceSTTR AssistanceK t k SBIR STTR Ph 0 d 00Kentucky SBIR-STTR Phase 0 and 00Enables small businesses and faculty entrepreneurs in Kentucky to prepare high-quality, competitive SBIR and STTR Phase 1 and Phase 2 proposals to participating federal agencies

Phase Zero Grant to prepare Phase 1 proposal: $4,000Phase Double Zero Grant to prepare Phase 2 proposal: $4,000

For details, visit www.KySBIR.com

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SBIRSBIR‐‐STTR Matching FundsSTTR Matching FundsSBIRSBIR STTR Matching FundsSTTR Matching FundsOnly program in U.S. that matches Phase 1 and Phase 2 dollar for dollar• Kentucky matches Phase 1 up to $150,000

$• Kentucky matches Phase 2 up to $500,000 per year (for up to 2 years)

Matching awards from Kentucky provide:• Support to expand work beyond federal Phase 1 proposal (to obtain more

data to include in Phase 2 proposal) • Better chance to obtain more federal grants (Phase 1B, Phase 2B, etc.)• Funds for costs not covered by federal grants (such as patent protection)• Support between federal Phase 1 and Phase 2 awards, to help sustain R&D

and maintain staffAbilit t th b i f t d t th k t• Ability to grow the business faster and enter the market sooner

Kentucky matching awards are competitive, but success rate is high if

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proposals are good and prepared per guidelines.

Moving Up in Federal DollarsMoving Up in Federal DollarsMoving Up in Federal DollarsMoving Up in Federal Dollars

Success Rate (%) Phase 2 Awards 

Federal SBIR‐STTR ($ millions) KY

‘10

K t k %

to Applications to Kentucky 2006 vs. 2010

US‘06Kentucky %

in 2010Entire U.S. % in 2010 Kentucky 2010

Kentucky 2006 06

Passed 17 states in 4 years

44th2006

27th

201050 12006 2010State Rank for SBIR-STTR $

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SBIRSBIR‐‐STTR Matching FundsSTTR Matching FundsSBIRSBIR‐‐STTR Matching FundsSTTR Matching Funds

KY FiApply for KY Match

ReviewProcess

Award Approved

Federal SBIR‐STTR Award

KY Firms

Out of State

KY Match

Review

Process Approved

Apply for  Award 

Kentucky Matching Award

Out-of-State Firms

Processpp y

KY Match Approved

Move toMove to Kentucky

F i f ti i it St t K t k

within 90 days of award

For more information, visit www.StartupKentucky.com

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SBIRSBIR‐‐STTR Matching FundsSTTR Matching FundsMoved Operations to KY From Moved Operations to KY From

SBIRSBIR STTR Matching FundsSTTR Matching FundsMoved Operations to KY From Moved Operations to KY FromAdvanced Dynamics UT Louisville Bioscience ORTransposagen Biopharma PA nGimat GA

NeoCytex Biopharma FL Orthopeutics TX

Turbo Wheelchairs SC Exatherm MI

Bexion Pharmaceuticals OH Global Quality Corp. OH3H Company VA Invenio Therapeutics OH

Since October 2006:128 awards to 61 high‐tech companies

ATI WV Minerva Systems RI

128 awards to 61 high tech companiesOver $32 million awarded$58.3 million in federal funds leveraged by Kentucky14 high‐tech firms moved to KY due to program (33 awards; 72 employees)

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Commonwealth Seed CapitalCommonwealth Seed CapitalCommonwealth Seed CapitalCommonwealth Seed Capital

CSC makes investments in:• Early-stage, Kentucky-based firms that are innovative, high-tech and/or

h b dresearch-based• Other funds that invest in Kentucky high-tech firms

CSC typically invests in deals where there is substantial investment by other funds and investors

Applications are accepted year-round and are reviewed by i d d t tindependent experts

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High‐Tech PoolHigh Tech Pool 

Awards are for projects that are innovative, knowledge-based and/or research-driven with the potential to be commercializedresearch-driven, with the potential to be commercialized

Funds may be used by companies and projects to pay expenses for:

• Proof-of-concept testing, prototype development, market research and business plan developmentP h i i t d th b i l t d it• Purchasing equipment and other business-related items

• Up-fitting, licensing and certifying facilities• Intellectual property protection• Other commercialization activities

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New Energy Ventures FundNew Energy Ventures FundNew Energy Ventures FundNew Energy Ventures Fund$5 million fund supports promising renewable and alternative energy companies based in Kentucky

Provides two types of awards:

1 G t f $30 0001. Grants of $30,0002. Equity investments of up to $750,000

• Initial investment rounds do not exceed $250,000• Requires private matching investment of equal amount

For details, visit www.Startups.KSTC.com, p

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AWide Range of SupportA Wide Range of Support Kentucky Reinvestment Act

KRA

INKAct

Kentucky Enterprise Initiative Act Incentives

KBIKEIA

Initiative Act Incentives for a New Kentucky

KBIKEIA

Kentucky Small Business Investment Credit

Kentucky BusinessKSBIC

Kentucky Business Investment Program

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InnovationInnovation NetworkNetworkInnovation Innovation NetworkNetwork

13 Network Locations13 Network Locations

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Innovation Network ProcessInnovation Network ProcessInnovation Network Process  Innovation Network Process  Th I ti N t k t id b t i l i dThe Innovation Network centers provide best-in-class service and bridge the communication gap between entrepreneurs, service providers, investors and university partners.

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The Process WorksThe Process WorksThe Process Works The Process Works 

ICC Program Activities FY2011 FY08-11New Companies 147 538Sales Revenues $572M $1.930BPrivate Investments $96M $374M

New Jobs 750 2,807Avg. Salary of Jobs $57,159 $52,236

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Upgrading InfrastructureUpgrading InfrastructureUpgrading InfrastructureUpgrading Infrastructure

C ld t P k N l C ld t L b WKU C t f R&DColdstream ParkBackup Power

Nucleus Innovation Park

Coldstream Labs WKU Center for R&D

EKU Business & Technology Center MetaCyte LLC Kentucky-Argonne Battery Manufacturing R&D Center

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Kentucky Highlands Business Innovation & Growth Center

NKU Infrastructure Management Inst.

UofL Cardiovascular Innovation Institute

Murray State ICC

Tax Tax Credits

Procurement Seed

Funding• Kentucky Small B i I t tProcurement

AssistanceFunding Business Investment

Credit• Kentucky Procurement

Small Business

Export Assistance

Lending Initiative

Procurement Assistance Program

• Kentucky Small Business CreditBusinessAssistance Initiative Business Credit Initiative

• High-Tech Pool• Matching funds for

High-Tech

Energy Ventures

Matching funds for federal SBIR-STTR awards

• Kentucky New Energy SBIR-STTR

y gyVentures fund

• Kentucky Export Initiative

• Commonwealth Seed Capital fund 19

Kentucky TKentucky Takes The National Stageakes The National Stage

H ti MidA i H lth V t F

Kentucky TKentucky Takes The National Stageakes The National Stage

• Hosting MidAmerica Healthcare Venture Forum• Hosting NAATBatt Annual Conference• Hosting 2012 NIH SBIR-STTR ConferenceHosting 2012 NIH SBIR STTR Conference• Hosting Annual Idea Festival

20NPR's Steve Curwood at IdeaFestival

Thank youThank youGene Fuqua

502 564 1910502-564-1910

Gene.Fuqua@ky.gov

For a copy of this presentation,e-mail Julie.Dawson@ky.gov

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