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Overview It is the goal of the MUCI Challenge Fund program to encourage the deployment of university technologies into the business sector in a timely manner. The Challenge Fund provides pre-seed investment stage money to help investigators and institutions test and validate the market need for and interest in the technology and to help move market driven projects through the steps generally required to obtain the financing or business partners needed to achieve successful commercialization, licensing or creation of start-ups. Challenge Fund awards are intended to assist innovative technology projects that have demonstrated promise for commercialization but have not yet obtained funding and/or partners to proceed with commercial translation and have not yet been licensed from the university by another entity. Request For Proposals RFPs will be for either Life Sciences commercialization projects OR for proposals in the Advanced Automotive & Engineering, Alternative Energy, and Homeland Security sectors. Life Sciences RFP Deadlines: September 8, 2008 Advanced Automotive & Engineering, Alternative Energy, and Homeland Security RFP Deadlines: July 14, 2008 November 3, 2008     Challenge Fund Guidelines These guidelines explain the eligibility and proposal requirements and funding options for applicants, as well as the selection criteria and program administration by the MUCI Challenge Fund Committee. Eligibility Proposal Requirements Funding Guidelines Review Criteria Terms of the Grant Administration Information Application Form Need Help? Eligibility   Recipient Institutions Proposals must be submitted by the Technology Transfer Office (or its equivalent, e.g., VP for Research) of a MUCI member institution. Awards are made to the member institution. Central Michigan University Eastern Michigan University Ferris State University Grand Valley State University Oakland University Michigan State University Michigan Technological University Northern Michigan University Saginaw Valley State University University of Michigan Van Andel Research Institute Wayne State University Western Michigan University Technology Status To qualify for funding, the applicant’s project must Have been disclosed to the institution Be owned by the institution Be CURRENTLY under management by the technology transfer office or its equivalent at one of the above institutions Not yet be licensed (an option license is permissible) Exceptions to these conditions can be recommended by the Director of the technology transfer office to the Challenge Fund Committee and, in such instances, will be evaluated on a case-by-case basis. Technology Definitions Definitions are those used by the 21st Century Jobs Fund. Follow these links for details: Advanced Automotive & Manufacturing Alternative Energy Homeland Security Life Sciences Proposal Requirements Application Elements Information about the Principle Investigator, the Primary Inventor/Contributor(s), and the Investment Partner or external source of match, if applicable Intellectual Property Issues: disclosure status; conflict of interest disclosure; freedom to practice Regulatory Issues: appropriate permissions for using human/animal subjects, if applicable (these may be pending at the time of application) Project and proposal history including any external reviews and alternate support sources under consideration Description of the technology, how it will be used, and the market need which it will serve, or a plan to assess the market Summary of general plans and timeline for commercialization and how the proposal fits into that plan An itemized budget demonstrating reasonable use of requested funds Description of the required equal matching funds (see below) Certifying signatures Matching Funds A 1:1 match is required and may be made up of any combination of the following types of funds: Cash Non-MLSC grant funds (e.g., SBIR/STTR grant) Universities may include up to $25,000 of patent or other legal expenses specific to this technology In-kind match of staff (e.g., consultants, technicians, programmers), supplies, equipment, facilities and other necessary resources above and beyond that normally expended by the technology transfer office or by researchers under their normal professional duties Universities will be credited with a match of 20% as a Facilities and Administrative cost (overhead) to acknowledge the contribution of infrastructure costs that cannot be specifically attributed to a single project Expenditures made 6 months prior to the award period may be used as long as they fit other criteria for the match Matching funds can come from any one or a combination of the following sources: Recipient institution Investors Commercial partner (service providers, corporations, etc.) Customer Funding Guidelines Funding Categories Market research and commercial assessment to confirm: Market need Customer/partner/investor interest Product requirements Plan for competitive advantage If the market need and interest have already been clearly established, then funding may be proposed for other major tasks in a commercialization plan such as: Proof of concept studies Clinical / translational studies and user testing IP enhancement, “Freedom to practice” analysis Prototype development and testing Feasibility studies for production scale-up Consulting to determine (as examples): Feasibility and plan for regulatory approval Appropriate and financially attractive business model Business plan preparation Portfolio profiling when a definitive path to commercialization is evident Funding Limitations Awards are capped at $150,000 for a single project and that total may be granted for a single proposal or over multiple award cycles. Initial MUCI grants will generally not fund all tasks in a commercialization plan. Applicants are encouraged to seek additional funding from MUCI for later stage tasks once feasibility for commercialization has been validated. Awards are granted over a single fiscal year; no-cost extensions may be requested. Awards are not granted to cover patent expenses. Awards may not be used to pay for tuition. Proposals eligible for funding from sources that support basic research, such as NIH or NSF, or from private foundations are strongly discouraged. Review Criteria  Qualifying Criteria Equal matching resources from one or more participating universities and/or investors (see above for details) Disclosure of intellectual property to the recipient institution Selection Criteria Competitive Advantage: anticipated competitive advantage of technology in terms of intellectual property or other benefits Market: strong evidence or case for there being a large, clearly understood, unmet need for the technology (this may not apply if intent of project is to access the market) Commercialization Plan: development, reasonableness Timeline: likelihood of a new product/process with strong market acceptance within 3-5 years, or within 3-7 years if a therapeutic model or otherwise appropriate Validation: evidence of interest and/or market need from a prospective investor, customer, and/or business partner; evidence of applicant institution support and effort Applicability: proposal objectives and stage of commercialization represent appropriate and reasonable use of the MUCI Challenge Fund Terms of the Grant Reporting Requirements A final report is required when the proposal project is complete. Recipients will document progress toward achieving commercialization goals and/or attaining licensing of technology on an annual basis. The MUCI Business Manager will provide the appropriate forms and reminders. If the proposal project is not complete and awarded funds are not fully expended by the conclusion of the award period, a no-cost extension must be requested no later than 30 days before the award period has ended. Failure to do so may result in outstanding funds being retracted. --- An extension request should include a description of progress to date, the amount of money not yet expended, specific plans to finish the project, and the amount of time needed to do so. --- Send requests to the MUCI Business Manager. Award recipients will notify the Intellectual Property Commercialization Committee (IPCC), MUCI’s advisory board, whenever the technology is licensed, whether this occurs during the period of the grant or afterwards. Repayment Requirements Financially successful projects (e.g., those that have attained licensing contracts) will assist in maintaining the MUCI Challenge Fund by contributing up to three (3) times the grant amount from revenues generated. These reimbursements to the Challenge Fund will be paid by the recipient institution(s) out of net royalty income, at a rate of 20% of the annual royalty per year until payment reaches 3 times the grant amount. Administrative Information Deadlines See above for the RFP deadlines Award notifications are made by the 15th of the following month Payment Awards are made to the recipient institution (vs. individual inventors) Recipient institutions may award subcontracts to partnering entities The University of Michigan manages the MUCI Challenge Fund application and approval process as well as award disbursement. Expenditures Expenditures can only be made for categories of expenses identified in the budget, and in keeping with the proposed budget. Expenses must be incurred within the approved award period. Prior approval from the MUCI Challenge Fund Review Team is required if you wish to make changes in the budget items or award period (contact the MUCI Business Manager). The PI(s) will be responsible for unauthorized expenses and for deficits. Application Form Download an Application Form. Need Help?   Contact the MUCI Business Manager, Tina Bissell at tbissell@umich.edu or 734-647-5730. Last updated: 01/2007

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