Demonstration Fund

The Demonstration Fund provides 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 Demonstration Fund supports commercialization activities by small and medium-sized Iowa companies in the advanced manufacturing, biosciences, and information technology industries. 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:

  • 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 a NAICS code that falls within the industries of advanced manufacturing, bioscience, or information technology
  • Applicants must be able to demonstrate that the product is ready for commercialization and market entry
  • Applicants must show their ability to develop and commercialize products and manage successful ventures

Type of Benefit:

  • There is no limit on the number awards a company can receive but there is a limit on the amount of funding available for a single project. Awards are made on a per-project basis and the maximum award shall not exceed $150,000 for a single project.
  • Financial assistance awarded to companies applying for the maximum $150,000 will most likely be a loan or royalty arrangement.
  • If a company receives an award for a project as a grant that is less than the $150,000 maximum, any future award for the same project most likely will be in the form of a loan or royalty agreement.
  • Companies requesting funding for projects less than $50,000 will receive more consideration for an award in the form of a grant. The company can submit a second application for the same project and the award will most likely be in the form of a loan or royalty arrangement.
  • The company must consider their ability to secure a loan which may be a contract condition.
  • If a company receives a partial award, the use of funds presented in the project budget will not change. The reduced award does not result in a pro-rated budget based on the partial award. The IEDA’s expectation is that the project applied for is still the project that needs to go forward regardless of whether or not the full funding was awarded.
  • Companies must match the award with at least one dollar of non-state funding for every two dollars of state funding. Funds spent prior to receiving the award cannot be used as matching funds. Extra consideration will be given to projects that provide more than the minimum match effectively leveraging more State funds.
  • See Award Terms and Conditions for Grant, Royalty or Loan
  • See Administrative Rules for Ineligible Use of Funds

How to Apply:

  • An eligible business must submit a Demonstration Fund application to the Iowa Economic Development, Authority, 200 East Grand Avenue, Des Moines, Iowa 50309. Applications are reviewed for funding decisions on a bi-monthly basis.
  • 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 iowaeconomicdevelopment.com/business/business_growth.aspx
  • The IEDA has engaged the services of VentureNet Iowa to manage the application review process. VentureNet Iowa will contact you to discuss the application, Expert Panel Review process and the presentation to the IEDA Technology and Commercialization Committee (TCC).
  • The TCC can take one of the following actions on each application it considers: approve full funding for the proposal; approve partial funding for the proposal; deny funding for the proposal.

To learn more:

Phone: 515.471.1965 or 515.471.1300
E-mail: innovation@iowa.gov