The IEDC 21st Century Research & Technology Fund

Many entrepreneurs developing new and exciting technologies and products have looked to the Indiana Economic Development Corporation’s 21st Century Research & Technology Fund (aka “21Fund”) as a means to fund their product development efforts.  From the 21Fund website, here are the stated goals of the program:

The 21 Fund seeks technology-based companies conducting business in Indiana and provides financial support to make the transitional leap from research to product development. By supporting high-tech companies during this crucial stage, the 21 Fund encourages entrepreneurial success and keeps Indiana’s most promising technologies in Indiana, leading to the creation of the high tech, high-paying jobs of tomorrow. The 21 Fund does not focus on a particular technology or application area in selecting awards. This allows Indiana’s strengths to identify themselves through successful completion of the 21 Fund’s rigorous review process. Avoiding pre-selection of technology focus areas ensures that the 21 Fund plays an unbiased central role in diversifying the State’s economy, a goal outlined in the 21 Fund’s legislation.

The 21 Fund encourages an environment of innovation and cooperation among Indiana universities and businesses to promote research activity through collaborative partnerships. These partnerships build on the innovation process which converts research ideas into products, a process that in turn creates jobs for Indiana communities.

The 21 Fund has also set aside a portion of its budget for an SBIR Program Office, created to support companies that are applying for or have received federal Small Business Innovation Research (SBIR) and/or Small Business Technology Transfer (STTR) awards. The 21 Fund’s SBIR/STTR Phase I Matching Program has been expanded to support later stage commercialization activities of Phase II SBIR/STTR awardees. Directly supported by the IEDC, both of these programs make awards through a set-aside of 20% of the 21 Fund’s appropriation.

I had a chance to meet with the new director of the 21Fund, Steve Hourigan. Prior to our meeting, I had heard rumors that the 21Fund was no longer operational and that the “rules” had changed dramatically. I’m encouraged to learn that these rumors were in fact just that–rumors. But after talking to Mr. Hourigan, I did learn a few important points that I’d like to clarify and share with you:

• Don’t expect to get $2M if you haven’t proven your product concept and a clear path to market.
• Don’t look for the 21Fund to provide funding for pure research.
• Be prepared to have other investors ready to commit, before being able to leverage 21Fund dollars.
• The primary metric for the 21Fund is job creation–REALLY.
• Expect rigorous financial and technical reporting requirements with consequences for non-performance.
• If there are problems encountered during product development efforts, the 21Fund wants to know about these as early as possible.

If you have questions about any of this information, let me know. I’ll do what I can to help get your questions answered.