Idea Transcript
ESS BIZGrants ELIGIBILITY CHECKLIST COMMERCIALISATION AUSTRALIA PROGRAM OVERVIEW
Checklist
Eligibility
Key Features Assists researchers, entrepreneurs and innovative firms to bring ideas for new products to market with high commercial potential. Pre-Requisites Applicants must have ownership, access to, or the beneficial use of any intellectual property necessary to carry out and/or commercialise the Commercialisation Australia Project. Research and Development Entry Points to Commercialisation Australia (CA) CA does not support Research and Development. Support is available for research and development for companies through tax offsets. (Refer ESS BIZTOOLS Paper 012-009 - Research And Development Tax Incentive) Contracted Case Managers Private Industry Consultants who guide participants through the commercialisation process.
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Volunteer Business Mentors Offer specialist advice regarding business and commercialisation.
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Selection Process Competitive Merit based Selection Process
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Programmes Available Skills & Knowledge Grants Experienced Executive Grants Proof of Concept Grants Early Stage Commercialisation Repayable Grants
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Grants Available Skills & Knowledge up to $50,000 - 80% Grant Experienced Executive Grants up to $200,000 over 2 years - 50% Grant Proof of Concept Grants $50,000 to $250,000 - 50% Grant Early Stage Commercialisation Repayable Grants $250,000 to $2M - 50% Grant Applicants Group Turnover Limits - Each of last 3 years Skills & Knowledge - $10M Experienced Executive Grants - $10M Proof of Concept Grants - $10M Early Stage Commercialisation Repayable Grants - $20M
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- ESS BIZTOOLS Pty Ltd - ACN: 078 451 439 Eligibility Checklist ESSBG010 101011 Page 1
Checklist
Eligibility
Eligibility Criteria A non-tax exempt company. A Researcher applying through their Australian University or Public Funded Research Agency (PFRA) Commercialisation Office (only for Skills and Knowledge and Proof of Concept Grants). An individual applying through an Eligible Partner Entity (only for Skills and Knowledge and Proof of Concept Grants). An individual who agrees to form a non-tax exempt company if their application to CA is successful. Intellectual Property Applicants must own or have the beneficial use of the intellectual property for their commercialisation project. Funding Share of Costs Applicants must be able to demonstrate their ability to meet their share of project costs over the period of the project.
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Project Duration Maximum of 2 years for each programme (except for Researchers and Individuals applying through an Eligible Partner Entity who have one year - but if they agree to incorporate a company (with approval of Programme Delegate) can have a maximum of 2 years.
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Fast Failure Progress will be closely monitored, if there is under-performance, funding will be reallocated.
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Reporting and Acquittals Every 3 months
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Merit Criteria Need for Funding Commercial Plan and Potential Market Opportunity Management Capabilities National Benefits The need for funding criteria will be assessed first. Only those applications that demonstrate a high level of merit criteria for need for funding may receive a merit ranking. Application Process Stage 1 Application Form - download from Commercialisation Australia Website Lodge Stage 1 Application Form with AusIndustry State Office After review - may be invited to submit application to AusIndustry State Office. Assessed by Commercialisation Australia Case Manager and AusIndustry and submitted to Commercialisation Australia Chief Executive Officer for submission to Commercialisation Australia Board. Need For Funding Checklist Has the applicant tried to get the funding elsewhere? If an application to a Bank/Lender has been made, enclose any correspondence from bank/lender rejecting application or copy of applicants file note on bank managers/lenders comments.
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- ESS BIZTOOLS Pty Ltd - ACN: 078 451 439 Eligibility Checklist ESSBG010 101011 Page 2
Checklist
Eligibility
Has the entrepreneur been realistic on equity offered to potential investors? If the applicant has money in the bank, does the cashflow forecast support the need for a government grant? Has the applicant identified where their funding contributions are going to come from e.g. Business Angels/Venture Capitalists letters of offer (which could be conditional on obtaining the CA Grant) or cashflow forecasts supported by a professional Accountant? If the applicant has venture capital or major business angel shareholders, has the applicant indicated why these shareholders will not make further capital commitments? Has the applicant adopted a realistic attitude to the equity being offered to raise capital from external investors (by inference, is this the reason the applicant wishes to raise grant funds from the Government?) If the applicant has raised equity capital in earlier tranches of capital raising, has sufficient information been disclosed in the application as to how those funds were expended? Has the applicant given any thought as to how the company is going to "scale up" in the future? In other words, where is the applicant going to raise the next round of capital from? (obviously this question is being raised on whether any additional capital is required) If negotiations have been held with potential Business Angels, or Venture Capital Investors, the details of the current position together with any copies of letter, emails etc. should be included with the application. Have you included evidence of the avenues that have been looked at to raise funding from equity and debt? It is not expected that the CA Board will accept that the applicant does not wish to dilute their share of the equity as a reason for not wanting to raise equity capital but to seek a government grant. The CA Board will probably be interested in understanding how it is intended that the company will progress the project beyond the work to be carried out under the CA Grant. In other words, what are the long term capital requirements for the company and where do the directors anticipate raising that capital from and/on what basis? The applicant should be aware that the CA Board may require a restraint on repayment of directors' loans as part of the funding agreement for a CA Grant.
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Commercial Plan and Potential Checklist Do the figures contained within the market research, business plan and other financial projects reconcile with the information contained within the commercial plan? Does the business have the capacity to deliver on proposed contracts? Is it realistic to expect that the business will be able to deliver product, services or processes in an expanded business as compared to the current significantly smaller business that is being developed on personal relationships? Have the applicants included testimonials from customers or potential customers? Any joint venture agreements, master reseller agreements, shareholder agreements etc., that the applicant has entered into should be included in the application. The applicant needs to submit details of the names and addresses of all directors and shareholders as part of the application. This is so that the CA Directors can consider whether they have a conflict of interest to declare. Directors who declare a conflict of interest do not participate in any of the deliberations for the application.
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- ESS BIZTOOLS Pty Ltd - ACN: 078 451 439 Eligibility Checklist ESSBG010 101011 Page 3
Checklist
Eligibility
Has the applicant received previous Government Grants? If so, an indication should be given as to what the Grants have been spent on. If there have been any performance issues relative to previous grants, a current application could be prejudiced. Does the application clearly identify the costs or business advantages for the product, process of service that would encourage potential customers to purchase the product, process or service? Unless there are very unusual circumstances, technical referees should be reputable business or academic experts, preferably in Australia. A process map that highlights the functions or modules of the product, process or service should be included with the application. The process map should be linked to project milestones for the activities to be undertaken. Milestones should define measurable targets wherever possible. Details should be included of any patents granted or provisional patent applications lodged for the product, process or service. If a patent or a provisional patent has not been lodged, details of the intellectual property protection strategies implemented by the applicant should be included. Whilst CA will accept possible multiple component applications, it is probably best to apply for individual components. If the applicant believes that it is necessary to apply for multiple components; do the components naturally coexist rather than be sequential? Have you been able to show how the components fit together? Why is it logical that they are undertaken at the same time? The inter-dependency of the components needs to be clear in the application. Market Opportunity Checklist The applicant needs to identify who else is in the market place. The applicant needs to have given consideration as to what competitors are likely to do if the applicant company starts bringing its products, processes or services to the market. Does the application include letters of support from current or potential customers in Australia and overseas? Management Capability Checklist Has the applicant prepared a management capability matrix, highlighting the commercialisation skills not available from the current management team? Is the applicant seeking to raise grant funds for the employment of a Chief Executive Officer or other commercialisation focused executives, such as General Manager, Manager, Marketing Manager, and Sales Manager? If you are seeking Experienced Executives Grants for employment of executives without past commercialisation experience, you will need to submit a strong argument as to why CA Experienced Executive grant funds should be expended on management team member(s) without commercialisation experience. Have you included the CV's on the current management team members in the application? Is the company's' management team capable of delivering the product or is it desirable to employ a project manager? Is the CEO and/or other members of the management team full time? part time?
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Enclose a schedule
- ESS BIZTOOLS Pty Ltd - ACN: 078 451 439 Eligibility Checklist ESSBG010 101011 Page 4
Checklist
Eligibility
What salaries are being paid to the members of the management team? Has the applicant included details of past experience and successes of the management team to reinforce the skill sets available to the applicant for commercialisation? National Benefits Checklist Has the applicant clearly articulated what the national benefit from this product, process or service will be? Has the applicant included comments on projected number of employees to be employed by the applicant? Does the application include details of projected number of employees to be employed by downstream businesses because of this product, process or services? Have you listed the anticipated benefits to other businesses? Have you listed the anticipated benefits to Universities and/or Research Organisations from this product, process or service? Overlaps With Other Government Programs Applicants should ensure that, if they are already receiving grant funds from other government programs (state, local government or federal), they are not double dipping.
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For more information: Refer to ESS BIZTOOLS Paper 014-070 Commercialisation Australia Overview
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