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Technology, Innovation and Startups

July 10, 2013

CIT accelerates the next generation of technology and technology companies

Our objective is to be globally recognized as the innovator,

builder and premier provider of services that accelerate

technology company development

Mission

Accelerate federal funding for small businesses

Operate technology sourcing and management consulting practice

Operate Office of Telework and Broadband Promotion

Operate the GAP Fund

Provide demand generation and infrastructure services

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Service Lines and 2013 Objectives

Deliver technology solutions via R&D programs

Maintain a statewide research and tech roadmap

Administer the Commonwealth Research Commercialization Fund

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RESEARCH

PROOF OFCONCEPT

ORINVENTION

EARLY STAGE

DEVELOPMENT

PRODUCTDEVELOPMENT PRODUCTION

Areas of Operation

CIT GAP Funds Overview

• Family of Seed-Stage Venture Funds

• Virginia Investment Focus

• Convertible Debt & Equity Fund

• Spin-Outs from Virginia Research Institutions

• “Double-Bottom Line” Fund

• Deep Engagement with Portfolio Companies

GAP Funds – Leverage Value (all)

13x

Track Record

81 New Companies Seeded

7 Spin-Outs from Universities and Federal Labs

13X Private : Public Funding Secured

8 Portfolio Companies Exited

4X Named “Top 100 Venture Fund”

Value Creation for …

EntrepreneursCo-InvestorsCommonwealth of Virginia

R&D Service Line

• Deliver technology solutions to solve national and regional challenges• Coastal ocean observing• Remote sensing technologies for mine safety• Vessel detection

• Maintain a statewide research and technology roadmap

• Established the Innovation & Entrepreneurship Measurement System

• Manage the Commonwealth Research Commercialization Fund

R&T Roadmap

• Identify key industry sectors for potential investment

• Identify basic and applied research opportunities with commercial promise in these sectors

• Encourage commercialization and economic development in these sectors

• Help ensure that investments in research are made prudently in focused areas with significant potential for commercialization and economic growth

Regional Priorities Include…

Region 2000• Wireless RF• Cognitive radio• Nuclear plant life• Healthcare• Integrated comms• Sensor / measurement

Hampton Roads • Modeling & simulation• National defense• Next Generation Shipbuilding• Biofuels• Aerospace• Regenerative medicine

Greater Richmond• Cyber security• Data management & analytics• Smart grid and analytics• Advanced Manufacturing• Biotechnology• Medical devices

Roanoke - Blacksburg • Power electronics• Smart construction• Bioinformatics• Remote patient care• Transportation• Advanced Engineering

Southern Piedmont • Energy Efficient Coatings• Micro propagation• Advanced manufacturing• Biopolymers• Data Analytics• Modeling & simulation

Shenandoah Valley• Energy storage• Biomass conversion• Drug research• Bio-threat defense• Food Processing• Education Technology

Virginia Piedmont• Defense intelligence• Specialty manufacturing• Education technology• Bioinformatics• Sensors & robotics• Data management & analytics Fredericksburg

• Secure telework• Defense logistics• Cyber security• Information assurance• Green tech • Modeling & simulation

Southwest Virginia • Biomass• Coal bed methane conversion• Plug-less power• Telemedicine• Tobacco-cultured vaccine• Data Management & analytics

Northern Virginia• Cyber security• National defense• Advanced Manufacturing• Data analytics• Bioinformatics• Aerospace

Commonwealth Research Commercialization Fund (CRCF)

• Advanced Manufacturing• Aerospace• Communications• Cyber Security• Energy• Environment• Information Technology• Life Sciences• Modeling & Simulation (M&S)• Nuclear Physics• Transportation

2012 Program Profile

181 proposals were received, representing all ten tech council regions

$35.5M in funding was requested

47 grants were awarded

$5.8M funding was provided

Funding was 100% matched by recipient

• Security for wireless devices – active defense mechanism

43 grants were awarded• Portable device for bone imaging – battlefield and emergency trauma analysis $3M funding was provided• Simulation software – 3D modeling for

homeland security Funding was 100% matched by recipient

2013 Program Profile

100+ proposals submitted, with $7.4M requested

Driving innovation and economic growth in Virginia through technology-based research and commercialization

Roadmap: Key Industry Sectors

Example CRCF Project Profile and Impact

Focus areas included young companies; proof of concept work; cyber security, M&S, IT for K-16 ed, life sciences

• Novel compounds – new therapeutic strategy to halt or reverse diabetes

Innovation & Entrepreneurship in Virginia

Entrepreneurs and startups account for 30% of new jobs in the Commonwealth

• Provide strategic vision for growing the I&E sector of Virginia’s economy

• Develop, track, analyze and report on key I&E metrics• Recommend statewide initiatives designed to capitalize on industry

and research strengths• Assess national priorities and programs that offer opportunities to

Virginians • Support regional organizations and initiatives focused on I&E• Current programs include:

o Innovation & Entrepreneurship Measurement System (IEMS)o Virginia Performs Scorecardo “Virginia Blueprint” economic development strategic plano STEMo Veterans Employment Initiative

Blueprint Virginia Economic Drivers:

Educational Excellence  Workforce Readiness Robust Infrastructure Supporting Advanced Manufacturing  Attractive Business Climate  Technology, Innovation and Startups Small Business and Entrepreneurship Quality, Cost-effective Healthcare  Energy Diversity & Security

Goal - Build a statewide consensus among private and public sector leaders regarding investment priorities