Demonstration Fund
The Demonstration Fund provides grants and loans to accelerate commercialization of products by companies in three targeted industry clusters — Bioscience, Advanced Manufacturing and Information technology. The purpose of the fund is to encourage commercialization of innovation thereby fostering competitive, profitable companies that create high paying jobs and wealth in Iowa.
Applicants must be able to demonstrate that the product is ready for commercialization and market entry. Applicants must also show their ability to develop and commercialize products and manage successful ventures. Companies seeking awards go through a rigorous due diligence process and are judged in terms of marketability, return on investment, and economic development impact. Funding is approved by the IDED Board of Directors.
Eligibility
An eligible business must be an Iowa-based company developing a unique and competitive product, technology, or process that can be protected in the marketplace. Applicants must have NAICS code that falls within the industries of advanced manufacturing, bioscience, or information technology.
The company must have engaged the services of one of Iowa's business accelerators or organization recognized by the department. Applicants must demonstrate the commercial viability of their technology and must demonstrate their ability to develop and lead a commercially successful venture.
Awards and Spending Guidelines
Awards are available up to $150,000.
Projects must be completed within a reasonable period considering the product to be developed. The company must reach all milestones to continue to receive funding.
No expenses will be paid for university overhead expenses or any work that was conducted by the company or any third-party consultant which was incurred prior to the term of the contract.
Matching Requirement
Companies must match the award with at least one dollar of non-state funding for every two dollars of state funding. No funds that have been generated through any state source can be used as matching funds; federal funding is an eligible match. Funds spent prior to receiving the award cannot be used as matching funds.
How to Apply:
The first step in the application process is to contact a business accelerator in Iowa to determine if the demonstration fund is a good match with the company and product. A list of business accelerators is available at http://www.iowalifechanging.com/business/business_growth.html. Companies may submit an application for financial assistance. IDED staff and the Technology and Commercialization committee will review the application and may invite the company to present to the committee.
Demonstration Fund
To Learn More:
Phone: 515.281.0142
E-mail: innovation@iowalifechanging.com
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