June 2013

Accelerate Michigan Innovation Competition

Save the date! November 12-14, 2013
What is the Accelerate Michigan Innovation Competition?
It is an international business competition which highlights Michigan as the perfect venue for innovation and business opportunity. The competition will uncover the best and brightest new business concepts in an effort to propel innovation based growth within Michigan.

Business Competition Important Upcoming Dates
May 29: Program Announcement & Call for Applications
August 7: Company Applications Close

Sign up now!


MEDC Mobile Cuisine Start-Up Program

Want to help expand the food truck industry in Michigan? Now is your chance!
The MEDC has created a grant program for food truck businesses in Michigan. New or existing businesses are eligible. The program can provide funds up to $10,000.
Potential bidders can read the Request for Proposals, which provides information to submit a proposal. Electronic proposal submissions are due by JULY 1, 2013
For more information, visit their website here

Entrepreneur Connect

"Entrepreneur Connect is a collaborative fun-filled event showcasing the energy and direction of entrepreneurship in Michigan. Don’t miss this opportunity for competition, education, networking, and mentoring. Join forces with ecosystem participants statewide working to advance innovation and entrepreneurship in Michigan!"
 
The event takes place on Tuesday, June 18 and registration is now open.

For more information and to register, visit:
http://www.entrepreneurconnectmi.com/

While you're there, be sure to check out the GLEQ Business Plan Competition awards which will be announced during this event.

Incubating Adenovation's Success

The MBIA would like to recognize and congratulate the OC INC tenant client Advenovation on its graduation. Advenovation is expanding to a 5,000-square-foot plant. 

"It is very rewarding to graduate an OU INC client and have them relocate in Rochester Hills, where they will contribute to creating jobs while supporting other local businesses and their global counterparts"
- OU INC Executive Director, Amy Butler 

Congratulations on a job well done, and keep up the good work! 

For more information, visit this website 

2013 MBIA Conference

We would like to extend our sincere thank you to all who attended the MBIA 2013 Conference. On May 16th over 100 participants from around the state joined MBIA in downtown Detroit to listen to speakers discussing the role Incubators and Accelerators play in Michigan’s future. 

Key highlights included David Egner, CEO of the New Economy Initiative thoughts on the framework for Michigan and Detroit’s keys for success, "Michigan is a victim of 100 years of success" says David Egner. He points out that collaboration, dedicated entrepreneurs, infrastructure, events (networking), the importance of "place", choosing talent over capital, and inclusion are the seven key points that will move Michigan forward. 
Quicken Loans David Carroll got the audience excited as he discussed the current and future far-ranging initiatives and programs that Quicken Loans is developing in an effort to jump-start the revitalization of Detroit.
Sessions on Crowdfunding, Customer Based Commercialization, Solving the Sustainability Challenge and tactical ways to coach your clients to do customer discovery had attendees discussing their unique challenges as we move forward with accelerating Michigan’s future entrepreneurs

Finally MBIA would like to thank our sponsors for their continued support:
Turnstone, Fifth Third Bank, Varnum, Grand Rapids SmartZone, MidMichigan Innovation Center, SPARK, TechTown, GLEQ, and MVCA.
Be sure to keep an eye out for future announcements regarding MBIA 2014!

Become a member today! Visit our website: http://michiganincubation.org

SBIR/STTR Funding Often a Good Match for Incubator Companies

If you haven’t taken a look at the SBIR and STTR federal R&D funding programs lately, it’s worth your time. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs award over $2.6 billion in grants and contracts annually through a competitive, awards-based process in which 11 federal agencies participate. This compelling source of non-dilutive funding encourages technology-based businesses to explore ideas and profit from their commercialization.

In 2012, the programs were reauthorized by Congress through 2017 with agency set asides increasing each year. The SBIR allocation will grow over the reauthorization period to 3.2% from the 2012 level of 2.6% of SBIR-granting agencies total extramural R&D budgets. For STTR-grant agencies, the percentage rises to .45% from .35% over the same period.  This insures that the SBIR and STTR programs will continue to be viable funding mechanisms at least for the next five years.

The two programs represent a stable source of funding for tech companies doing high-risk/high-reward research, especially during times of market volatility.  Incubator companies often fit this profile and benefit all the more because indirect costs resulting from services available in some incubators (i.e. legal, accounting services, etc.) can be included in an SBIR/STTR proposal. Plus, companies applying for this funding must do a significant portion of the project work in company controlled research facilities, and incubator space meets the “company controlled” requirement while providing access to needed equipment and services.

The process is rigorous, but the rewards can be substantial (up to $1.5 million over two years for Phase II awards).  The Phase I award success rate is typically 10-20% and Phase II award rates increase to 35-40%.  Compare this to the less than 1% for venture capital, which shies away from early-stage companies, and takes an equity position and usually a board seat.  It is also important to note that although this is government funding, the business retains rights to technology developed under these programs.

The good news for Michigan companies is that, thanks to a grant from the Michigan Strategic Fund administered by the MEDC and managed by BBC Entrepreneurial Training and Consulting (BBCetc), our entrepreneurs can get training and one-on-one proposal preparation guidance that is substantially covered by the Michigan SBIR/STTR Assistance Program.  To learn more about the Michigan program, your eligibility for SBIR/STTR, opportunities for training, etc., visit www.bbcetc.com.
MBIA Template 1 - June 2013

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