uic chancellor’s innovation fund: proof of concept awards

UIC Chancellor’s Innovation Fund:Proof of Concept Awards Program Guide

Illinois

BRIDGING THE GAP BETWEEN RESEARCH AND TECHNOLOGY COMMERCIALIZATION

Table of Contents

Section Page

1 UIC Chancellor’s Innovation Fund Proof of Concept Awards Program Overview 3

1.1 What is the POC Awards Program gap funding initiative? 3

1.2 What is the scope of the POC Awards Program initiative? 4

1.3 Where does POC Awards Program fit into the model of early stage capital 4

investment?

1.4 Will the POC Awards Program gap funding initiative make a difference? 6

2 Proof of Concept Awards Program Considerations 7

2.1 Considering applying for the POC Awards Program? 7

2.2 Can IllinoisVENTURES & the OTM provide guidance in preparing my proposal? 7

3 Eligibility To Submit a Proof of Concept Awards Program Proposal 8

3.1 Principal Investigator Eligibility 8

3.2 Project Eligibility 9

3.3 Pre-Proposal Submission Requirement 9

4 Submission Process 10

5 Stage I: Pre-Proposal Application Submission 11

6 Stage II: Full-Proposal Application Submission 12

7 Proof of Concept Awards Program Committee Review of Full Proposals 13

7.1 Review Selection Criteria 13

8 Award Funding 14

9 Post-Award Funding Obligations 15

10 Important Deadlines 15

11 Compliance Requirements 15

For more information, contact us at [email protected]

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Proof of Concept Awards Program


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Section 1: Chancellor’s Innovation Fund Proof of Concept Awards Program Overview

1.1 What is the POC Awards Program gap funding initiative?

An important mission of the University of Illinois is to help transform discoveries and technologies originating at

the University into useful products and services that benefit society. It is with this goal in mind that in the last

decade the University has established an infrastructure for technology commercialization that includes patenting,

licensing and technology transfer activities, incubation facilities and early stage funding support for University

related startups. Through these efforts the University has successfully helped commercialize many innovative

University technologies.

The UIC Chancellor’s Innovation Fund Proof of Concept (POC) Awards Program is designed to further accelerate

the University’s commercialization efforts. One well documented challenge to technology commercialization is the

early stage funding “gap” that exists for many discoveries. Discoveries resulting from basic research conducted

at universities typically need further development to reach important milestones that are critical to commercial

development. It is now well documented that many novel and innovative university-based technologies fail to reach

these milestones that bridge the gap (also known as the “valley of death”) between research and commercialization.

This gap cannot be bridged with traditional sources of research funding as such funds are typically limited to

basic research.

To bridge this commercialization gap, the UIC Chancellor’s Innovation Fund (CIF) is launching a Proof of Concept

Awards Program gap funding initiative to help support commercialization of new UIC technologies. The POC Awards

Program will be conducted twice yearly with $500,000 per round available for projects. Grants of up to $75,000

will be awarded for selected projects to evaluate and accelerate the commercial potential of UIC technologies by

allowing for key milestones in product development, testing, or prototype construction to be achieved. Grant

proposals will be reviewed on the basis of technological soundness, intellectual property strength, market and

commercial attractiveness. Projects demonstrating the greatest potential to either secure a license from industry,

lead to the formation of an investor-backed startup company or secure SBIR/STTR or other development funding

will be given priority.


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In addition to providing much needed gap funding, the POC Awards Program will also facilitate and foster the

exchange of ideas between University innovators and industry experts. A POC Awards Program Review Committee

composed of venture capitalists, business leaders and technology innovators will score all proposals and presenta-

tions and those proposals scoring highest and deemed most competitive by the Review Committee will be chosen

for funding.

1.2 What is the Scope of the POC Awards Program?

The intended scope of this initiative is to provide UIC investigators with the opportunity to compete for awards

anticipated to be in the range of $25,000 - $75,000 to be used over a 12-18 month time frame to address

technical or commercial risks associated with a technology they have developed, and thus make that technology

more attractive for:

1. Follow-On Funding (SBIR/STTR grants, angel funding, etc.)

2. Licensing to Industry

3. Launching a Startup Venture by Strengthening Intellectual Property (IP)

1.3 Where does the POC Awards Program Fit into the Model of Early Stage Capital Investment?

The traditional sources of early stage capital for advancing a technology from the lab to the marketplace have

been government funding, angel investor capital and venture capital. These sources of capital are the backbone

for technology development in the United States; however, to attract funding from these sources, a technology

must have reached a critical stage in its development such that a competitive advantage can be envisioned for the

technology and a path to commercialization can begin to be drawn.

Gap funding aims to take a great technological idea that may still be too “green” in the eyes of early stage investors

and “de-risk” the technology to a point where it will draw interest from these investors, or make the technology

more attractive for investment or licensing by an established commercial entity. The commercial potential of many

university technologies often remains untapped due to the fact that there are no concrete early stage funding

sources willing to risk investing capital in a technology that is still unproven and which may or may not “bridge the

gap” from a basic research discovery into a potential, commercially viable product opportunity.


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According to the recently published Mind the Gap 2011 Report (Innovosource), gap funding is emerging as a

disruptive approach to early stage funding because it better aligns resources and needs at a crucial stage in the

development of a technology. Gap funding programs are not constrained in the way traditional funding sources

may be and are allowed to support technology development by:

• Focusingontranslationalresearch,proofofconceptandstartupdevelopment.

• Targeting smaller grants and investments per project, which allows for the funding of

more projects in diverse technology areas.

• Creatinganexusfortheinteractionbetweenfaculty,studentsandbusinessnetworks.

• Beingmission-driventoinnovate,educateandcreatejobs.

Gap programs have been identified as a critical element for shaping the future of innovation and support for these

programs from policy makers and universities is growing.


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1.4 Will the POC Awards Program gap funding initiative make a difference?

The authors of the Mind the Gap 2011 Report surveyed 44 gap funds around the country and uncovered these

very encouraging statistics for 2011:

• 395startupcompanieswereformedasadirectresultofgapfundingsupport

• 7,753newjobsweresupportedbygapfundedprojectswhichwerecommercialized

• $16,300/Job:Thegapfunddollarsinvestedperjobcreated

• A70%survivalrateforgapfundedstartupsover5yearsold.Thisiscomparedtoa51%

survival rate from a Small Business Administration (SBA) analysis of all new firms.

In addition, the ability of gap funds to attract additional capital is very impressive.

Each $1 of Gap Funding attracts up to:

$9.3 in Government Grants

+ $3.6 in Industrial Support

+ $11 in Angel Capital

+ $148 in Venture Capital

> $170 total in Additional Capital

While the economic benefits of gap funding programs are evident, the ability of these programs to create a culture

of innovation is equally important. The UIC Chancellor’s Innovation Fund believes that its 2013 Proof of

Concept Awards Program initiative will not only bring economic benefits to both the University and the State of Il-

linois, but that it will also help strengthen the Community of Innovation that has grown up around the cutting edge

research taking place at UIC today.


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Section 2: Proof of Concept Awards Program Considerations

2.1 Considering Applying for the POC Awards Program?

The “gap” in gap funding represents the fact that inventors often face a significant shortage of available capital

required to deliver their inventions from the lab to the marketplace. There is often an inability to fund translational

or proof of concept studies on the part of traditional, early stage investment sources such as angel investors

and venture capitalists. The primary objectives of gap funding programs are to thoroughly evaluate the opportunity

presented by a proposed technology, to elucidate a route to commercialization, and to then develop and de-risk

the opportunity to a point where it can find success, either through licensing to an existing company or forming the

foundation for a startup venture (Innovasource: Mind the Gap 2011 Report). Investigators interested in submitting

a proposal for the POC Awards Program should have a clear understanding of the opportunity their invention

presents, whether their technology is at a stage in its development to truly benefit from gap funding, and the com-

petitive advantage their technology would bring to the marketplace.

Questions to Consider in Consultation with your Office of Technology Management Tech Manager:

• IsmytechnologyatastageinitsdevelopmentwherePOCAwardsProgramfundswilladdress

technical or commercial risks and make the technology more attractive to potential licensees

or attract additional third party funding?

• Isthereaclearvisionforaneventualproductthatwillariseoutofmytechnology?

• Arethereanyintellectualproperty(IP)issuessurroundingmyinvention?

• WhatisthestrengthofmyIP,itsdefensibility,itsabilitytogeneratenewIP?

• Doesmytechnologyaddressanunmetneedinthemarketplaceorpossessa

competitive advantage over other products?

2.2 Can IllinoisVENTURES & the OTM Provide Guidance in Preparing my Proposal?

Investigators are encouraged to speak with their OTM Tech Manager and IllinoisVENTURES about their proposed

project to help generate ideas for creating a competitive proposal. OTM Tech Managers and IllinoisVENTURES

will be able to help investigators understand the strengths of their IP, the market potential for their technology and

provide insights into the strategic next steps that might be pursued following the successful completion of the POC

Awards Program studies. In addition, investigators who are chosen to submit full proposals for the POC Awards

Program will be required to prepare a short 15 minute PowerPoint presentation along with their Tech Manager that

they will co-present before the POC Awards Program Review Committee.


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Section 3: Eligibility To Submit a Proof of Concept Awards Program Proposal

All UIC investigators who meet the Principal Investigator Eligibility and Project Eligibility Requirements as outlined

below are welcome to submit a Pre-Proposal Application.

Please read the eligibility requirements carefully. Pre-Proposals will be reviewed by a University Committee

composed of Research Deans and select delegates from across the UIC campus. Based upon this initial

review, investigators may or may not be invited to submit a Full Proposal for POC Awards Program funding.

To be considered eligible for funding under this grant initiative, both the investigator and proposed project must

meet the following criteria:

3.1 Principal Investigator Eligibility

• ThePrincipalInvestigatormustcurrentlybeafull-timeUICfacultymember.

• ThePrincipalInvestigatormusthaveaninventiondisclosureonfilewiththeUIC

Office of Technology Management (OTM), upon which the proposed project will be based, prior

to applying. Applications will not be accepted if a disclosure is not on file with OTM prior to the Pre-

Proposal Submission deadline.

• As the POC Awards Program initiative aims to provide funding so that key milestones in product

development,testing, or prototype construction can be achieved, it is expected that participation by

non-UIC personnel may be required. Investigators are encouraged to utilize both University and non-

University expert resources that will allow their technologies to achieve project based milestones. Non-

UIC personnel should be identified within the grant application as key contributors and their role within

the study defined.

• OnlyonePOCAwardsProgramprojectmaybesubmittedperPI.Investigatorswithmultiple

technology disclosures should focus their proposal on the most commercially promising technology

within their portfolio.


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3.2 Project Eligibility

• Thetechnologywhichprovidesthebasisfortheprojectproposalmustnotyetbelicensed or optioned.

• Theintellectualproperty(IP)surroundingtheinventiondisclosuremustbeownedby the

University of Illinois. Please contact the Office of Technology Management if you are unsure

of the intellectual property ownership of your invention.

• Theproposedprojectmustbefocusedoncommercialproductdevelopmentortesting.

Proof of Concept Awards Program funding cannot be used for basic exploratory studies or as general

funding for the Principal Investigator’s lab. Projects must focus on a current invention disclosure on file

with the OTM and should address how achieving identified project milestones will move that invention

towards commercialization.

• Allprojectmilestonesshouldbeachievablewithin12-18monthsofthestartoffundingandwithinthe

requested budget.

3.3 Pre-Proposal Submission Requirement

Submission of a Pre-Proposal Application Form along with a short two page narrative will be required of all

investigators interested in applying for the POC Awards Program. Instructions for completing the Pre-Proposal

Form and Narrative are highlighted under “Section 5 Stage I: Pre-Proposal Application Submission”.

Pre-proposals will be reviewed by a University Review Committee composed of Research Deans and select

delegates assembled from across the UIC campus. Based upon their assessment of a project’s ability to

“bridge the gap” with the funding requested, the Review Committee will then select a limited number of projects

whose Principal Investigators will be invited to submit full grant proposals. Only those Principle Investigators who

are invited to submit full grant proposals will be eligible to do so. The POC Awards Program Review Committee

can only review and score proposals that have been invited to participate in Stage II of the submission process.


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Section 4: Submission Process

The submission and review of proposals for the POC Awards Program will consist of a two-stage process.

Stage I - Pre-Proposal Submission:

Required of all investigators who wish to be considered for the POC Awards Program.

Stage II - Full Proposal Submission:

After the University Committee Review of Pre-Proposal Submissions, investigators may be invited to submit Full

Proposals for funding. Only investigators invited to submit Full Proposals may do so and only invited proposals will

be reviewed by the POC Awards Program Review Committee.


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Section 5: Stage I - Pre-Proposal Submission

A Pre-Proposal Application Form along with a short two page narrative is required of all investigators who wish to

be considered for the POC Awards Program. The two page narrative should address the following:

1. Project Description / Specific Aims: Brief, high-level summary of the proposed project, which

should highlight work accomplished to date. For example, what work has been done to get the

invention to its current stage of development, and what work is proposed to advance the invention

to the next stage? (One page or less. Please do not include figures. Figures can be contained

in a one page appendix and referenced in the text.)

2. Project Impact: How will gap funding make the project invention a more commercially viable

technology? What technical or commercial risks will be addressed with gap funding? (One paragraph)

3. Market Attractiveness: What unmet need will the project invention address or what competitive

advantage will the invention bring to the marketplace? (Five or six sentences)

4. Appendix: Maximum, one page appendix with any supporting data or references cited in the

narrative may be included. This appendix will not count towards the 2 page limit.

Pre-Proposal Applications must be submitted electronically to [email protected]

A Pre-Proposal Application Form can be downloaded by clicking here.

Pre-Proposal Applications will be reviewed by a Committee of UIC Research Deans and select delegates from

across the UIC campus. Based upon their assessment of a project’s ability to successfully “bridge the commercial-

ization gap” by completion of the proposed studies or prototype development and within the requested budget,

the Review Committee will choose projects that will advance to Stage II in the submission process and be invited to

submit full proposals for funding. Only those investigators who are invited to submit Full Proposals will be eligible

to submit such proposals. Any proposals submitted without an invitation will not be reviewed.

http://illinois.edu/2736/poc_pre_proposal_2013.pdf


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Section 6: Stage II - Full Proposal Application Submission

Investigators submitting a Full Proposal Application should format their submission using a minimum 11-point font,

¾ inch margins, and single spacing.

A Full Proposal must include the following:

A Cover Page: Please check the cif.uic.edu website for updates on when the page will be made

available.

B Summary: Maximum 200 word concise high-level summary which highlights the novelty of

the invention, its commercial attractiveness, project goals and anticipated next steps. This summary

should be primarily non-technical and may be posted on the OTM website if the project is funded.

C Project Narrative: Maximum 5 page narrative to address the following:

1. Project Description: Please describe the technical and commercial merit of the project, including

planned studies, project goals, anticipated outcomes and project risks. It is not necessary to go into

exhaustive experimental detail on the project. The project description should be a high level overview

that will allow the reviewer to grasp both the technical goals of the project and how achievement of

those goals will position the technology for either follow-on funding or licensing to industry.

2. Timeline and Deliverables: Please include specific deliverables / milestones that are achievable

with the level of funding requested and provide a timeline as to when these milestones will be reached

over the proposed budget period.

3. Impact Statement: Highlight how the proposed project will address a commercial or technical

risk associated with the technology and impact the potential to secure a license from industry, lead to

an investor-backed startup or attract additional sources of funding such as SBIR/STTR grants.

4. Market Assessment: Describe how the invention to be funded by this award addresses an

unmet need in the marketplace or possesses a competitive advantage over existing products.

D BudgetJustification: Maximum 1 page, detailed, line item description of how funds will be

allocated for the proposed study. Funds are only to be used to further commercial development of

the specified technology and are not to be used as general laboratory funding.

E Appendix: Maximum 5 page appendix which can include a list of references cited in the

proposal, any other financial support that can be leveraged to complete the studies proposed, any

letters of support or biographical sketches of key personnel involved in the project.

Full-Proposal Applications must be submitted electronically as a single file to [email protected]

http://otm.uic.edu/

http://cif.uic.edu/


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Section 7: Proof of Concept Awards Program Committee Review of Full Proposals

As mentioned, Full-Proposal Applications will be reviewed by a Proof of Concept Awards Program Review

Committee composed of venture capitalists, business leaders and technology innovators. Proposals will be

reviewed and scored for technological soundness and project impact, strength of the intellectual property and the

market and commercial attractiveness of the invention. In addition, investigators will be required to prepare a short

15 minute PowerPoint “Pitch” presentation, in collaboration with their OTM Tech Manager, to “Sell” their technology

to the assembled Review Committee. The Committee will score projects based upon both the strength of

the written proposal as well as the inventor’s vision and passion for the project as conveyed through the Pitch

presentation. Those projects scoring highest and deemed most competitive by the Review Committee will

be selected for funding.

7.1 Review Selection Criteria

Selection of proposals for funding will be weighed upon the following criteria:

• Project Impact: Will the studies bridge an identified gap in the inventor’s research program and

make the invention more attractive for follow-on funding (SBIR/STTR, VC/Angel) or to attract a

commercial partner? What are the qualifications and strengths of the Investigator(s) with respect to

the proposed studies? Are the studies proposed technically achievable within 12–18 months and

cantheybeachievedwiththerequestedbudget?40%

• Intellectual Property and Prior Art Summary: Are there any impediments in the ability to

patent or protect the underlying resulting intellectual property? The review will look at the difference

between potential claims for the current technology and existing literature and patents. The review

will also examine other patented or available technologies and the type and strength of patent claims

thatwilllikelybeavailable.30%

• Market Attractiveness & Commercialization Strengths: A review of the market for the end

product which could result from the intellectual property will be conducted as well as an assessment of

what resources will be required to develop the invention for commercial applications. The market

attractiveness review will incorporate the estimated size and growth potential of the market and

the impact of the technology on the market. Any commercialization issues that may affect the value

ofthetechnologyfromtheperspectiveofpotentiallicenseeswillbeidentified.30%


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Section 8: Award Funding

POC Awards Program grants are anticipated to be awarded in the range of $25,000–$75,000 over a 12–18 month

period. A maximum of $75,000 in funding can be requested under this initiative. Funding is only allocable to com-

mercial product development or testing. Funds cannot be used as general support for the investigator’s lab. Awards

are intended to only provide reimbursement for project related expenses and cannot be used to provide salaries for

principal investigators, or to pay patent costs or for other legal fees. Funding may be used to provide salary support

for graduate or undergraduate students involved in the project. For projects which are funded under this initiative,

there are no assurances that funds will be released by a certain date. As a result, investigators must not spend

any funds prior to those funds having been released into the investigator’s account. Funding will not be released all

at once, but rather will be contingent upon reaching specified milestones within the project proposal.


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Section 9: Post-Award Funding Obligations

Funded projects will be required to submit brief, written updates to the POC Awards Program following the

achievement of project milestones in order to trigger the next tranche of funding to be released into the investiga-

tor’s account. Continued project funding is dependent upon the successful achievement of project milestones set

forth in the Full Proposal narrative. In addition, a brief final report should be submitted at the end of the grant period

summarizing the milestones achieved and the next steps the investigator is likely to pursue in the commercial de-

velopment of his or her technology. This information will help provide insights as to whether gap funding is allowing

UIC technologies to bridge the commercialization gap and opening up new opportunities for these technologies

that may otherwise not have been available without such funding.

Section 10: Compliance Requirements

Approvals and certifications need not be in place at the time of application, but must be received before any

POC Awards Program funds will be released.


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Section 12: Acknowledgments

The UIC Chancellor’s Innovation Fund would like to acknowledge and thank the Office of the Chancellor for helping

to make this Proof of Concept Awards Program fund possible.

UIC Office of the Chancellor

UIC Office of the Vice Chancellor for Research

UIC Office of Technology Management

IllinoisVENTURES, LLC

Illinois

ENTURES LLC

uic chancellor’s innovation fund: proof of concept awards

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