![Page 1: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/1.jpg)
WTF(unding)? How to prepare a winning
application for TCF/CIF
![Page 2: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/2.jpg)
To invest or not . . . That is the question
![Page 3: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/3.jpg)
The Application &
Review Process
![Page 4: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/4.jpg)
Technology Commercialization Fund
Purpose:
Fund product development to position a company for follow-on investment
Who:
Early-stage companies in MD meeting eligibility requirements
What:
$100K Investment – 4 tranches Additional $125K follow-on possible
When:
1st of every month
Program Contact:
Henry Ahn [email protected]
![Page 5: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/5.jpg)
Cybersecurity Investment Fund
Purpose:
Fund product development to position a company for follow-on investment
Who:
“Cybersecurity” companies in MD meeting eligibility requirements
What:
$100K Investment – 4 tranches Additional $125K follow-on possible
When:
1st of every month
Program Contact:
Henry Ahn [email protected]
![Page 6: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/6.jpg)
Eligibility Requirements
Companies with less than 16 FTE’s
At least 50%
working in Maryland
AND
Pre-revenue, OR
<$500K qualified investment
![Page 7: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/7.jpg)
Review Timeline
TCF
CIF
Month 1 Month 2
1st
1st
Application Due Date
Compliance Check and Initial Review
Compliance Check and Initial Review
Site Visit
Site Visit
Pitch to Committee: 3rd Wed of the month
Pitch to Committee: 3rd Wed of the month
![Page 8: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/8.jpg)
8% Convertible Note
5 Year term
Conversion triggers:
• $500K Qualified Investment
• Acquisition
No discount
No cap
Investment Terms
![Page 9: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/9.jpg)
Where do I get more information?
W W W . T E D C O . M D
![Page 10: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/10.jpg)
Where do I get more information?
Request for Application
Funding Document
Application Link
Program Manager
Checklist
![Page 11: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/11.jpg)
Designing a
Suitable Project
![Page 12: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/12.jpg)
Concept vs. Reality
No Napkins . . . Please!
![Page 13: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/13.jpg)
What’s a Good Project?
A commercialization pathway
![Page 14: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/14.jpg)
What’s a Good Project?
An addressable market
![Page 15: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/15.jpg)
What’s a Good Project?
Qualified team
![Page 16: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/16.jpg)
What’s a Good Project?
Differentiation
![Page 17: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/17.jpg)
Project Details
12 Months
3 Milestones
20% Indirect costs
50% Company match (cash or in-kind)
![Page 18: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/18.jpg)
Actual Project Example
Timing Pmt Description
Up front payment $25,000 None
Milestone 1 $25,000 • Implement gamification elements • Implement scoring algorithm • Provide teacher w/ IEP support
Milestone 2 $25,000 • Implement peer sharing • Implement multiple assignments • Implement auto-complete
Milestone 3 $25,000 • Pilot speaking & listening practice & assessment tools
• Enable audio/video upload
![Page 19: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/19.jpg)
Financial Projections
![Page 20: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/20.jpg)
Basic Rules…
1. Yes, you do need financial projections!
2. It's not accounting, it’s business.
3. Are never be correct…but must make sense.
• Investors will discount your projections.
• They have to be “big enough” to matter.
• They are a reflection of your assumptions about
the business, dressed up to look like a P&L.
4. Goal is to discuss assumptions, not numbers.
![Page 21: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/21.jpg)
Market…
“I need 0.01% of this huge market to make money!!”
Macro (Top Down) approach is not acceptable
because no one can assess whether your plan is
reasonable and whether you can execute.
Micro (Bottom Up) approach is preferred because it
starts with the customer and is grounded in market
research.
![Page 22: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/22.jpg)
A Suggestion…
Link your Market Segmentation Strategy & Market
Research to your Financials.
1. Use market research to add credibility to assumptions.
2. Use segment strategy & assumptions about contract
value & structure to build annual revenue projections.
3. Use estimate of COGS to calculate gross margin % and
operating profit.
4. Use segment strategy & assumptions about sales
channels & other overhead expenses to build annual
SG&A budget.
5. Calculate EBIT and determine investment needs.
![Page 23: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/23.jpg)
In other “words”…
![Page 24: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/24.jpg)
Financial Projections Template
Financials are not separate from the business plan. They are a different way
ofrepresenting that plan.
![Page 25: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/25.jpg)
Watch out for…
1. Constant %GM
2. %GM too low.
3. Constant %SG&A.
4. Multiples of prior years.
5. Confusing cash with accounting – It’s all about
burn rate and investment needs, not
depreciation, amortization, and revenue
recognition rules.
![Page 26: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/26.jpg)
Now that you’re all done…
1. Calculate % share of the total market.
2. Share should be reasonably attainable, allowing for
plenty of downside risk and upside opportunity.
3. In other words “not too large and not too
small…just right!”.
4. And, if you didn’t notice, what was just outlined
here is about 2/3 of a 10 slide investor pitch deck!
![Page 27: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/27.jpg)
What is TEDCO
Looking For?
![Page 28: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/28.jpg)
What is TEDCO Looking For?
Innovative/disruptive, seed stage, technology-enabled solution in a large, growing market.
Biologic/diagnostic
Medical device
Health IT / Tele-health
Enterprise software
Web application
Engineered product
You get the picture…but, not simply a “me too” play.
![Page 29: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/29.jpg)
TEDCO TOP 10 LIST
#1…
Follow the instructions in the Request for Application (RFA).
It sounds simple, but you’d be surprised!
And, remember, the “customer” is always right.
![Page 30: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/30.jpg)
#2…
Refine your proposal with the help of outside advisors.
Because you’re competing with all funded plans, not just those submitted this month.
TEDCO TOP 10 LIST
![Page 31: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/31.jpg)
#3…
Show us some data.
Life Sciences – in vitro studies
Engineered products – prototype & lab testing
Software – MVP & some user feedback
And there may be more stage-appropriate funding options.
TEDCO TOP 10 LIST
![Page 32: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/32.jpg)
#4…
Show us a team.
We understand “stage-appropriate”.
Blend business with technical.
Use no/low cost external resources to fill holes.
What new hires are needed and when?
Remember…Marketing & sales is commonly overlooked.
TEDCO TOP 10 LIST
![Page 33: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/33.jpg)
#5…
Show us a business, not just a technology.
Revenue model.
Go-to-market plan
Competitive analysis
TEDCO TOP 10 LIST
![Page 34: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/34.jpg)
#6…
Show us a value proposition.
What “pain” are you alleviating?
How is the value of your solution measured?
What will motivate the buyer to act?
TEDCO TOP 10 LIST
![Page 35: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/35.jpg)
#7…
Show that you understand customer & market.
Maximize actual market research.
Platform? Identify a target segment.
Life Sciences? Address FDA & reimbursement.
And be sure to identify the paying customer!
TEDCO TOP 10 LIST
![Page 36: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/36.jpg)
#8…
Show us a go-to-market plan.
Can be a powerful competitive differentiator.
And don’t expect the customer to alter it’s buying habits!
TEDCO TOP 10 LIST
![Page 37: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/37.jpg)
#9…
Link financial projections to all elements of your plan.
Can be a powerful competitive differentiator.
Include operating metrics…how big is the “problem”?
Support your investment needs.
Please don’t run out of cash and don’t make math errors.
TEDCO TOP 10 LIST
![Page 38: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/38.jpg)
TEDCO TOP 10 LIST
#10...
Show that you’re an effective communicator.
We aren’t experts in everything – pitch so your grandparents get it!
Get outside help with your pitch…and practice.
Get a stranger to proofread your proposal & presentation.
![Page 39: TCF.. CIF.. WTF(unding)? How to prepare a winning application for TCF/CIF](https://reader034.vdocuments.site/reader034/viewer/2022042600/589f428c1a28ab490c8b65a1/html5/thumbnails/39.jpg)
Questions?
Questions?