The University of Missouri System plans to establish a three-year, $5-million fund for start-up companies. The Enterprise Investment Program “is designed to help fund start-up companies in Missouri that can move the discoveries of our faculty from the laboratory to the marketplace,” leveraging the university’s expertise in life sciences, nanotechnology, information technology, engineering, medicine/medical devices, and energy, according to university president Gary Forsee. An outside advisory panel will be formed to review funding applications and recommend awards. The panel’s review process, which will include the evaluation of business plans, is slated to begin this summer. The university hopes to make its first awards this fall.
Eligible start-up companies — including those that operate out of university incubators across Missouri — will be required to obtain an investment, raised or invested directly by the founder(s), at a level that shows a commitment to the company’s success, according to Forsee. Additional consideration will be given to start-ups with funding from Small Business Innovation Research (SBIR) and/or Small Business Technology Transfer (STTR) grants and/or matching funds from other sources. Start-ups that apply for the funds also must have licensed a U-Missouri technology, must be located and licensed to do business in Missouri, and must be committed to commercializing IP owned by U-Missouri. In addition, the start-ups must agree to grant the university an equity interest in the venture with a fair market value equivalent to the amount of the university’s financial investment and accept funding installments based on achievement of agreed-upon milestones.
Source: St. Louis Business Journal