Demonstration Fund
The Demonstration Fund is established to provide financial and technical assistance to encourage high technology prototype and concept development activities that have a clear potential to lead to commercially viable products or services within a reasonable period of time.
The fund provides up to $150,000 to encourage commercialization activities by small and medium-sized Iowa companies in the advanced manufacturing, biosciences, and information technology industries. The fund is designed to encourage product refinements, market planning and market entry activities of unique products to foster competitive, profitable companies that create high paying jobs and wealth in Iowa. The primary purpose of the fund is to help businesses with a high-growth potential reach a position where they are able to attract later stage private sector funding.
Eligibility
An eligible business must be an Iowa-based company developing a unique and competitive product, technology, or process that can be protected in the marketplace. Applicants must have NAICS code that falls within the industries of advanced manufacturing, bioscience, or information technology. Within these industries, extra consideration will be given to projects that fall within specific technology platforms.
Applicants must be able to demonstrate that the product is ready for commercialization and market entry. Applicants must also show their ability to develop and commercialize products and manage successful ventures.
Companies seeking awards go through a rigorous due diligence process and are judged in terms of marketability and economic development impact. Funding is approved by the Iowa Economic Development Authority Board. Companies must submit regular reports to the department on their progress.
Awards and Spending Guidelines
Awards are available up to $150,000. The forms of financial assistance may consist of loans, forgivable loans, grants and such other forms of assistance the board deems appropriate and consistent with the needs of a given project.
No expenses will be paid for university overhead expenses or any work that was conducted by the company or any third-party consultant which was incurred prior to the term of the contract.
Matching Requirement
Companies must match the award with at least one dollar of non-state funding for every two dollars of state funding. No funds that have been generated through any state source can be used as matching funds; federal funding is an eligible match. Funds spent prior to receiving the award cannot be used as matching funds.
How to Apply:
An eligible business must submit an application for financial assistance to the Iowa Economic Development Authority, 200 East Grand Avenue, Des Moines, Iowa 50309. It is recommended you contact an Iowa business accelerator to determine if the demonstration fund is a good match for your company and assist you with the application process. A list of business accelerators is available at www.iowaeconomicdevelopment.com/business/business_growth.aspx.
The department has engaged the services of VentureNet Iowa to review the applications. VentureNet will contact you to discuss the application and the presentation process to the Technology and Commercialization Committee (TCC).
Demonstration Fund
To Learn More:
Phone: 515.471.1965 or 515.471.1300
E-mail: innovation@iowa.gov