Phase I – A grant of up to $50,000 is made to the host university for initial evaluation of the market/technical risks of a discovery. A preliminary intellectual property assessment is also conducted. The primary goal of the Phase I grant is to answer the question: “Is it commercially feasible to build a company around this technology?” Phase II – A follow-on grant of up to $100,000 is available to the university to further mitigate technology and market risk, continue prototype development and achieve company formation. GRA requires Phase II projects to have 1-to-1 matching funds to demonstrate external market validation. Common sources include federal SBIR grants, angel investors, industrial contracts or other forms of early revenue. Phase III – In contrast to Phase I and II, Phase III is a loan that provides up to $250,000 directly to eligible VentureLab companies. The loan is non-collateralized and has favorable repayment terms and conditions. To be eligible, the company must have Georgia-based qualified management in place, as well as a fully executed license from the university. As a loan to the company, there is wide discretion in how funds may be used. Typically, use varies depending on the company and market in which it operates. In all cases, use of Phase III funds requires GRA approval. For example, the company may use loan funds to pay relocation expenses for a key hire, or to cover payroll expenses while negotiating a key customer contract or a term sheet with an investor. VentureLab Fellows. Among VentureLab’s most valuable resources are business experts recruited to the projects. GRA brings “serial entrepreneurs” and other business people with relevant domain experience to work with faculty as business coaches or launch CEOs. These experienced managers, called VentureLab Fellows, usually begin by exploring a menu of labs and technologies before deciding on an opportunity that meshes with their interests and experience. 3 VentureLab External Advisory Committees. Progression through the Venturelab program is guided, in part, by external advisors. At intervals throughout the process, GRA brings a group of operational managers and investors together to consider the progress and commercial potential of VentureLab investments. In recognition of the varied nature of the projects funded by VentureLab, two external advisory committees are in place – a technology committee (focused on companies and projects built around university discoveries in the communications, computing, content, energy, and advanced materials space) and a bioscience committee (focused on companies built around university discoveries in the life sciences and medical device space). Every VentureLab investment is scrutinized by the appropriate external advisory committee at the transition from Phase I to Phase II, and Phase II to Phase III. The advisory team makes recommendations to the companies and to the GRA on continued funding, changes in project direction, and termination of some project funding. Approval by the external advisors is required for all investment decisions associated with Phase III loans.
Collective Genius: Innovation, Entrepreneurship, and the Commercialization of University Research
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