BARTA Programs and Resources

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BARTA Programs and Resources

• Bioe2e
• Biotech Entrepreneur to Entrepreneur
• Sharon Stagg
• www.barta.org

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Outline

• What is BARTA?
• The VENTURE Program
• CalTIP

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What is BARTA ?

• BAY AREA REGIONAL TECHNOLOGY ALLIANCE
• MISSION Supports technology-based economic
  development in the San Francisco Bay Area region
• Sponsored by regional economic development
  organizations and business service providers
• Other RTAs in Los Angeles/Orange, San Diego,
  Inland Empire, Sacramento, Fresno
• manage CalTIP programs--state matching funds for
  high-tech start ups seeking/receiving federal

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BARTA a virtual organization

• Affiliated with a business assistance
  organizations.
• MANEX - Corporation for Manufacturing Excellence
• Software Development Forum (San Jose)
• CSU Hayward - School of Business and Economics
• SBA/SBIR
• Collaborates with regional business incubators
• Communications Technology Cluster (Oakland)
• Contra Costa Software Incubator (Concord)
• Alameda Center for Emerging Technologies
  (Alameda)
• BARTA services accessible through our Web site
  www.barta.org

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BARTA programs support emerging, technology-based
firms

• CalTIP matching grant program--peer reviewed
  grants program for Northern California/SF Bay
  Area companies with federal RD funding
• VENTURE program
• Business development assistance at moderate cost
• Uses Executive Consultants
• After business plan is vetted, VENTURE companies
  pointed to angels and other local investors

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VENTURE provides assistance to early-stage
companies

• Start-ups need more than money -- they need
  business development assistance
• Emphasis on shortening time to market and time to
  money
• VENTURE helps companies
• Strategic Development Advice
• Strategic Partnering and Business Connections
• Access to Capital
• Publicity

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VENTURE Program Components

• High-Tech Start Ups
• Referred by banks, financial institutions, from
  WWW
• Enroll for nominal fee (500)
• Matched to qualified Consultant
• Executive Consultants
• Business and technical professionals (10 years
  experience)
• Can be investors
• Volunteer initial services (VENTURE Basic)
• Participating Service Providers (PSPs)
• Provide financial support to BARTA
• Offer professional services at reduced fees to
  VENTURE clients
• View participation as strategic marketing
  opportunity
• Investors -- Angel networks, VC referrals,
  Corporate Investors
• Take advantage of complete, vetted business plans
  and well-coached, emerging companies

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How does VENTURE work?

• Company enrolls, and interviews at BARTA
• Mutual determination of interest
• 500 annual fee
• Executive Consultant assigned
• Executive Consultant meets with Entrepreneur
• Inventory of readiness
• Reviews Entrepreneurs Action Plan
• Monitors fulfillment of plan
• Recommends appropriate resources
• Goal -- to guide emerging companies to the next
  steps in their development
• Legal preparation , Management team, Market
  understanding, Technology development

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VENTURE Program Benefits

• Benefits to client companies
• One-on-one, inexpensive, experienced counseling
• Disinterested sounding board for ideas and
  concerns
• Results in vetted business plan
• Consultants provide referrals to other advisors
  and resources

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Summary

• BARTA focuses on assisting early-stage,
  technology based businesses through CalTIP and
  fee-for-service programs
• Access to capital --major requirement for BARTAs
  vetted client companies
• BARTA building network of business development
  resources
• BARTA seeking deal flow from financial partners
• Benefits New client base for BARTA Vetted
  clients for investors

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California Technology Investment Partnership
Program (CalTIP)

• CalTIP is a seed fund specifically targeted for
  business development for firms that invest in
  Federal R D programs. Technology companies can
  win a grant to bring their products to market.
  The Bay Area Regional Technology Alliance manages
  a grant program the California Technology
  Investment Partnership (CalTIP) that provides
  up to 250,000 in state funds to match federal
  technology awards.
• How do I apply for CalTIP funding?
• The CalTIP program solicits proposals at least
  once a year. The 2002 solicitation will be
  issued on 15 March.
• Instructions will be available via our web site,
  at www.barta.org (Programs), and on the DSTI
  site, at http//commerce.ca.gov/state/ttca/ttca_ho
  mepage.jsp (Technology and Innovation Grants)
• Proposals are due on 15 May. Awards are usually
  announced in August or September.
• Typical awards are for 100-250,000.

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Overview of CalTIP
What can CalTIP funds pay for? CalTIP funds pay
for basic business activities to bring your
product to market. This includes
commercialization activities (manufacturability,
marketing, etc.). Do I need to win a federal
award before I apply for a CalTIP award? No. You
can apply for a CalTIP award if you have recently
applied or plan to apply for a federal award.
However, you must include a draft of what your
federal proposal will look like. Furthermore,
you must receive your federal contract or grant
by about March 1, 2003. I have already won a
federal award. Can I still win a CalTIP
award? Yes. However, you can only receive CalTIP
funds if the federal award was executed April 1,
2001 or later. If you did not reference state
funds in your initial federal proposal, you must
amend that proposal. Is CalTIP a grant or a
loan? CalTIP is a grant. It does not need to be
paid back. However, the state only reimburses
your costs the state does NOT simply write a
check when your award is announced. Can the
CalTIP grant last more than one year? Yes. You
can receive funds under CalTIP as long as you are
receiving matching federal funds. However, all
CalTIP funds must be spent in three years.
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Overview of CalTIP cont.
Can governmental funds pay for the entire
project? No. Federal Funds must provide at least
20 of the total budget. CalTIP Funds will
provide at most 25 of the total budget, with a
maximum CalTIP award of 250,000. Other Funds
must provide at least 25 of the total budget.
These Other Funds could come from a corporate
partner, a local government, a community college,
or your own company. What does it take to
win? In order to succeed in the CalTIP program, a
proposal must not only be credible technically,
but must also show that the proposers have
envisioned a clear path to the marketplace for
their product. The solicitation identifies 5
major areas of evaluation criteria. Read them
carefully. Dont overlook any of them. The
evaluation panels will grade your proposal based
on these criteria. So clearly identify how your
proposal meets each criterion. When will I
know whether I won? When can I receive the
money? Results should be announced in late July
or early August. Winners can begin receiving
state funds after they have executed a federal
contract the earliest possible date is
approximately December 2002.
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Overview of CalTIP cont.

• Each year, approximately 150 companies statewide
  including 40-50 from Northern California
  apply to the state solicitation, which opens in
  mid-March and closes in mid-May. Working with
  state officials, BARTAs Reviewers from the
  fields of high-tech industries, business and
  financial communities awards approximately
  1.75 million to 2.25 million in grants.
  (approximately 8-10 total grants)
• For eligibility requirements, firms should
  examine the state solicitation. The basic
  program elements are
• California Organization. Only companies
  registered to do business in California are
  eligible.
• Federal award. Applicant must win a federal
  technology contract or grant between April 1,
  2001 and about March 15, 2003. Any federal
  program including the Small Business Innovation
  Research program, the Advanced Technology
  Program, a Broad Area Announcement, or any other
  federal contract or grant can serve as match.
  The federal proposal must (1) compete against
  other proposals - sole-source contracts are not
  permitted (2) develop, revise or commercialize a
  new technology (3) include the State of
  California as a potential funding source.
• California Spending. All CalTIP funds plus
  three times the CalTIP grant must be spent in
  California.
• Commercialize. CalTIP is not a research program.
  Rather, it seeks to complement federal programs
  by focusing on basic business issues.
• Applicant/Partner Contribution. CalTIP is not a
  strict grant. Companies can only win funds if
  they and their partners also contribute to
  the technology project.

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BARTA Review

• After we receive the proposals, we assemble a
  panel of about fifty potential reviewers, drawn
  from the financial, business, technology and
  academic communities.Each proposal is reviewed
  by at least four reviewers. Each reviewer
  receives several proposals, usually about
  four.This provides adequate statistics to allow
  normalization of scores.Proposals are scored,
  and then reviewers meet for a day-long reviewers
  conference.For each proposal, one reviewer is
  named lead reviewer, and calls or visits the
  company, to be able to answer questions about the
  proposal in the final review conference.
• a total of 45 points.
• A proposal must receive 25 points or more to
  qualify for funding consideration. Total points
  is 45.
• Proposals are scored both by the RTAs and DSTI.
  A state-wide consolidated ranking is presented to
  the Trade Commerce Agency for approval.

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What are the odds of winning ?

• In 1999, (a typical year) 148 proposals were
  submitted state-wide. 45 were submitted to
  BARTA.
• Of the 45, we eliminated 8 in a preliminary
  review, as not qualifying.
• Of the remaining 37, 8 eventually received both
  federal and state funding.
• The latest received its funding approval in
  February 2002.
• We expect the competition to be greater this
  year, (however in 2001 the proposals received
  were significantly lower) but the odds for a good
  proposal will probably be no worse than one in
  four.
• Most, but not all, of our winners were small
  businesses. Some participated in a consortium
  (ATP projects). Some partnered with university
  or national lab researchers.
• Proposals represented a wide range of
  technologies.

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How to increase your chances of winning - II

• Read the scoring criteria in Part D of the
  Solicitation. Your proposal should address All of
  these points thoroughly.
• Address the points raised in Location of
  Required Information (Form 4)
• Be sure that your CalTIP proposal discusses how
  you plan to spend the States money and what your
  intentions are to commercialize your product or
  service, and how you plan to reach the market.
• Look for partners in California, Universities,
  National labs, small businesses, etc.
• Ask someone in your organization to score your
  proposal using the published criteria. If you
  dont get close to twenty-five points, go back to
  the drawing board! (25 points is the minimum.)

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Scoring Criteria

• The state prescribes four major criteria, they
  include
• (a) Technology Product Description (Points
  awarded 1-10)
• i. What is your technological innovation, and how
  does it advance the relevant field of knowledge
  or practice?
• ii. What is your proposed new product, and how is
  it related to your technological innovation?
• iii. What is the specific problem or need your
  new product will address?
• iv. How will your new product differ from
  existing products?
• v. At what development stage is the product and
  related technology?
• vi. What materials and methods will be used to
  produce or manufacture your product?
• vii. What is the status of the intellectual
  property related to your proposed product?
• (b) Market Description (Points awarded 1-10)
• i. Describe, segment and size the relevant market
  sector. Note the sources of market data
  presented.
• ii. Identify the market niche your product will
  occupy and its competitive advantage within that
  niche.
• iii. Describe your potential customers what they
  do, where they are located, how many there are,
  why they will buy and how.much they will pay for
  your product.
• iv. Describe your business development strategy.
  How will you market, sell and distribute your
  product within its targeted market?
• v. Describe your business model. How will your
  proposed product achieve profitability?
• vi. Identify your potential competitors and
  describe how you will successfully compete with
  them. Include suppliers and products that
  define todays market, as well as companies
  competing to provide new, innovative products.
  i.
• ii. Identify other barriers to entry and describe
  how you plan to overcome them.

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Scoring Criteria cont.

• Regional Impact, Regional Partners (Points
  awarded 1-10)
• Discuss how the project will create new jobs.
  What type of jobs will be created and how many of
  each? Distinguish between jobs created in the
  near term using the project budget and jobs that
  may be created in the longer term, after the
  project is completed successfully. Provide
  evidence to support all job creation claims.
  Include only directly created jobs.
• Describe the training component of the project,
  if any, distinguishing clearly between training
  included in the project budget and training that
  may occur later if the project is completed
  successfully. Identify the type or classification
  and number of workers whose skills will be
  upgraded. Describe how their skills will be
  upgraded, and how the training program will work.
  
• Discuss the economic impact the project will have
  within the region and across the State of
  California. Describe and quantify the effect of
  successful project completion on the regional and
  state economy, and the sectors of the regional
  economy that will benefit.
• Identify regional and statewide partner
  organizations that will add value to the project
  through material contributions or through
  collaboration with project personnel. Describe
  each regional partners link to the project and
  how it will contribute to the likelihood of
  project success.
• Small Business (Points awarded 1-5)
• Identify the applicants status as a Small or
  Very Small business. Provide the companys
  current number of employees and average annual
  revenues for the last three years. Does the
  applicant company have partnerships with small
  businesses which will contribute to the projects
  outcome? Are small businesses represented on
  applicant companys board of directors?