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Alternative Funding Resource Guide


In light of the difficulties that young technology and life science companies are facing in raising funds from traditional sources such as commercial banks and Silicon Valley venture capital firms, Carr & Ferrell LLP has prepared this Alternative Funding Resource Guide. The Guide introduces privately-held enterprises and start-up companies to funding sources they may not have considered previously

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									Alternative Funding Resource Guide

Carr & Ferrell LLP

2200 Geng Road, Palo Alto, California 94303 Phone: 650-812-3400, Fax: 650-812-3444 CarrFerrell.com

In light of the difficulties that young technology and life science companies are facing in raising funds from traditional sources such as commercial banks and Silicon Valley venture capital firms, Carr & Ferrell LLP has prepared this Alternative Funding Resource Guide. The Guide introduces privately-held enterprises and start-up companies to funding sources they may not have considered previously. If you would like more information about any of the alternative funding sources listed in this Guide or if we can be of assistance in any of your funding or other corporate needs, please contact Barry Carr, Jill Fishbein or Robert Keller of Carr & Ferrell’s Corporate Group at 650-812-3400.

Table of Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Federal Government Grants/Loans State Government Grants/Loans Independent/Nonprofit Research Grants University Research Grants Export Working Capital Financing Venture Capital Investors Located Outside Silicon Valley Entrepreneur Groups Selling to the Federal Government Selling to the State of California Product Development Groups

Copyright© 2008 Carr & Ferrell LLP. All rights reserved.


Federal Government Grants/Loans
The U.S. Federal Government provides grants to various entities in wide range of areas including health, energy, science and technology. The website http://www07.grants.gov provides a complete listing of all current federal grants outstanding. The National Science Foundation also provides grants to small businesses focusing on technology, typically in the following areas: •	 •	 •	 •	 •	 Advanced	Materials	and	Manufacturing Biotechnology Chemical-Based	Technologies Electronics Information-Based	Technologies

The primary objective of the NSF is to increase the incentive and opportunity for small firms to undertake cutting-edge, high risk, high quality scientific research that would have a high potential economic payoff if the research is successful: http://www.nsf.gov/funding/ or http://www.nsf.gov/ mps/oma/about.jsp


US Department of Energy, Office of Science gives grants and contracts to commercial organizations, provided they use the grants.gov website. The US Department of Energy has set up a special department related to Energy Efficiency and Renewable Energy. Further, the DOE has extended its loan guarantees for companies related to energy efficiency, renewable energy, and advanced transmission and distribution technologies through February 26, 2009: http://www.lgprogram.energy.gov/


The National Institutes of Health offers numerous grants in all fields of health and medical research. These grants are generally to be used only for purposes of research, but are also available to commercial organizations: http://grants.nih.gov/grants The American Cancer Society offers grants to all areas of cancer research: http://www.cancerportfolio.com/index.jsp As does the American Association for Cancer Research: http://www.aacr.org/Default.aspx?p=6251 And the American Heart Association: http://www.americanheart.org/presenter.jhtml?identifier=2493


State Government Grants/Loans
In general, the California government provides links to the state’s grant opportunities at http://www.cirm.ca.gov/grants/default.asp The	 California	 Institute	 for	 Regenerative	 Medicine	 provides	 Grants	 for	 regenerative	 medicine	 and	 stem cell research: http://www.cirm.ca.gov/grants/default.asp California Clean Energy Fund (CalCEF), formed in 2004, will make equity investments totaling at least $30 million in emerging clean energy technology companies: http://calcef.org/ The California Pollution Control Financing Authority has issued over $12 Billion in funds related to reducing pollution. This entity offers grants to all forms of innovation related to reducing pollution or making better use of recyclables: http://www.treasurer.ca.gov/cpcfa/index.asp The	 California	 Integrated	Waste	 Management	 Board	 offers	 grants	 to	 entities	 performing	 research	 related to recycling and reducing waste: http://www.ciwmb.ca.gov/Grants/ The Energy Innovations Small Grant (EISG) grants up to $95,000 for individuals and entities researching innovative ways to reduce energy consumption: http://www.energy.ca.gov/research/innovations/


University Research Grants
Many	universities	provide	grants	related	to	research.		These	grants	are	usually	restricted	to	 researchers associated with the universities however. University of California System: http://www.ucop.edu/research/funding/physci_funds.html UC Berkeley: http://research.chance.berkeley.edu/main.cfm?id=8 Stanford University: http://med.stanford.edu/rmg/funding/ In some cases, universities will also provide information on government grants related to current grants or research interests of the university. The UC System provides valuable links to such grants: http://www.ucop.edu/research/homelandsecurity/funding.html Berkeley has its own website dedicated to related grants: http://www.spo.berkeley.edu/Fund/newfaculty.html#doe As does Stanford: http://med.stanford.edu/rmg/funding/nih.html


Independent/Nonprofit Research Grants
In addition to universities, many nonprofit organizations also provide research grants. These are usually in the medical field and sometimes require association with a university. The following are some examples: The A. P. Giannini Foundation Fellowship Program is for investigators in the early stages of their careers. The Fellowship Program supports innovative medical research in the basic sciences and applied fields. The research should help to advance the translation of basic biomedical sciences into new treatments, preventions and cures for human diseases and contribute to the alleviation of human suffering. The Foundation awards six to eight new fellowships annually on a competitive, peer-review basis. Fellowships can be funded up to a maximum of three years based on satisfactory performance. The current fellowship stipend is $40,000, $41,000 and $44,000 per year up to a maximum of three years: http://www.apgianninifoundation.org/index.html Some chapters of the Arthritis Foundation offer grants to meet unique research needs. The purpose of these grants programs is to fund highly meritorious and innovative research programs that meet the mission of the Arthritis Foundation. Funding opportunities are announced in November of each year with application deadlines usually in February of the following year. The amount and duration, as well as the character, eligibility and purpose of a chapter grant, are determined by the chapter issuing the RFP: http://www.arthritis.org/research/ProposalCentral.asp#train The National Ataxia Foundation funds research for new and innovative studies that are relevant to the cause, pathogenesis or treatment of the hereditary or sporadic nervous system disorders or diseases: http://www.ataxia.org/research/ataxia-research-grants.aspx Burroughs Wellcome Fund annually awards grants to Candidates who hold a Ph.D. degree in the fields of mathematics, physics, chemistry (physical, theoretical, or computational), computer science, statistics, or engineering and who have completed at least 12 months but not more than 48 months of postdoctoral training at the time of application. The Fund awards $500,000 over five years to support up to two years of advanced postdoctoral training and the first three years of a faculty appointment. The postdoctoral portion of the award should last a minimum of one and a maximum of two years, usually at the institution that nominates the candidate: http://med.stanford.edu/rmg/ funding/bwfscientific.html Although the Lasker Foundation is not a grant-giving organization, it does support and provide awards to initiatives that raise awareness of medical discoveries and their benefits to human health, and that increase support for the medical science enterprise: http://www.laskerfoundation.org/ Life Sciences Research Foundation grants three-year fellowships to graduates of medical and graduate	schools	in	the	biological	sciences	holding	M.D.,	Ph.D.,	D.V.M.	or	D.D.S.	degrees.	Awards	will	be	 based solely on the quality of the individual applicant’s previous accomplishments, and on the merit of the proposal for postdoctoral research: http://www.lsrf.org/pages/geninfo.htm


Independent/Nonprofit Research Grants continued
Pharmaceutical	Research	and	Manufacturers	of	America	Foundation	(PhRMA	Foundation)	provides	 grants related to the optimal development of a drug delivery product or device and its subsequent performance in the delivery of the drug from the device following its administration to a patient. To be eligible, applicants must either (i) hold a Ph.D. degree in pharmaceutics or a related discipline from an accredited U.S. university or (ii) expect to receive such a degree before activating the fellowship: http://www.phrmafoundation.net/awards/pharmaceutics/postdoc.php


Export Working Capital Financing
Export working capital financing is a way for exporters to obtain funding through unique loans to purchase goods and services they need to successfully export their business’s technology or product. Several banks provide this type of financing, and the Export-Import Bank of the United States and the U.S. Small Business Administration offer programs to guarantee such loans on behalf of U.S. exporters. Export-Import Bank of the United States: http://www.exim.gov/ Small Business Administration: http://www.sba.gov/ Silicon Valley Bank is one bank that specializes in such programs: http://www.svb.com The Export-Import Bank also provides services such as loaning money to foreign buyers of emerging market buyers to purchase the products exported from the United States. Additionally, they will provide long-term financing on large loans for projects over $10 million. The Export-Import Bank provides additional incentives to industries with projects in certain renewable energy and water sector exports.


Venture Capital Investors Located Outside Silicon Valley
The National Venture Capital Association has thousands of VC members, many of whom are located outside Silicon Valley: http://www.nvca.org/members.html


Entrepreneur Groups
Entrepreneur Groups introduce early stage companies and entrepreneurs to like-minded individuals in the community. These offer opportunities to share problem solving strategies, get advice on profitability and funding sources. Sometimes these groups can be good resources for obtaining funding as well. Bay Area Startup Network (BASN) is a non-profit association in the San Francisco Bay Area focused on helping early stage entrepreneurs build successful companies: http://www.basn.org The Bio2Device Group is a volunteer organization in Silicon Valley for companies and individuals working in the biotechnology, medical device, diagnostics and pharmaceutical industries: http://www.biodevicegroup.org Chinese Information and Networking Association (CINA) is a non-profit organization originally formed by Chinese professionals, and is based in Silicon Valley: http://www.cina.org The California Israel Chamber of Commerce (CICC) is a not-for-profit, non-governmental organization dedicated to strengthening business and trade relations between California and Israel: http://www.ca-israelchamber.org eWomenNetwork is a networking group focused on women professionals, and has branches located across the U.S. and Canada: http://www.ewomennetwork.com Forum for Women Entrepreneurs and Executives is based in the San Francisco Bay area and focuses on women entrepreneurs, professionals, and angel and venture capital investors: http://www.fwe.org SDForum is a Silicon Valley not-for-profit organization designed for software professionals: http://www.sdforum.org Keiretsu Forum is an angel investor network with members in North America, Europe and Asia: http://www.k4forum.com The Telecom Council of Silicon Valley connects companies and individuals involved in the region’s Communications Technology industry with one another for business development, collaboration, and education: http://www.telecomcouncil.com The German American Business Association is a non-profit organization that fosters transatlantic knowledge-sharing and networking among German-American and Californian business and tech communities: http://www.gaba-network.org


Entrepreneur Groups continued
The	Independent	Computer	Consultants	Association	is	a	St.	Louis,	Missouri,	not-for-profit	trade	 association of independent and small business technology professionals with a chapter in the San Francisco Bay Area: http://www.icca-sfba.org The National Association of Women Business Owners – Silicon Valley Chapter is a diverse association of CEOs and Executive Officers of women owned businesses serving a membership in the greater Bay Area: http://www.nawbo-sv.org Silicon Valley Association of Startup Entrepreneurs is a nonprofit association based in Northern California with the mission of helping early stage entrepreneurs across all technology sectors build successful companies: http://www.svase.org Silicon Valley Indian Professionals Association (SIPA) is a Silicon Valley based organization focusing on Indian entrepreneurs and investors: http://www.sipa.org TiE (The Indus Entrepreneurs) was founded in Silicon Valley by entrepreneurs and professionals with roots in India, and has 52 chapters in 11 countries: http://www.tie.org The VC Taskforce is a group focused on the members of the venture community and their portfolio companies: http://www.vctaskforce.com Women in Technology International is a networking group for women with branches across the United States and internationally: http://www.witi.com


Selling to the Federal Government
The Federal Government provides countless opportunities for businesses interested in contracting with or selling to the Government. General information regarding Federal Acquisition can be found at this site: http://www.arnet.gov/far/index.html Anyone interested in contracting with the Federal Government should first visit the Central Contractor Registration: http://www.ccr.gov/ All opportunities for Government contracts can be found at the Federal Contracting Database: http://fedbizopps.gov As federal laws, executive orders, and new regulations require federal agencies to purchase “green” products (defined as biobased, recycled content, and energy efficient), extra opportunities may exist for green companies to sell and contract with the Federal Government.


Selling to the State of California
The following site provides a list of current selling and contracting opportunities: https://www.cscr.dgs.ca.gov/cscr/ This following site provides direction and information for companies interested in bidding to the state: http://www.pd.dgs.ca.gov/sell2state/default.htm Like the Federal Government, California Public Contract Code Sections 12400 and 12404 require that contracts follow an “Environmentally Preferable Purchasing” set of requirements. This will help both cleantech and other companies that operate using “green” practices: http://www.green.ca.gov/EPP/default.htm The California Energy Commission also provides specific contracts related to clean and renewable energy projects on the following site: http://www.energy.ca.gov/contracts/index.html


Product Development Groups
Many	product	development	groups	offer	services	to	market,	develop	and	distribute	products	and	 inventions. Some offer profit sharing opportunities in lieu of fees for service: Azopharma Product Development Group (for medical and pharmaceutical developers only): http://www.azopdogroup.com/ Integrated Product Development Group: http://www.integratedpdg.com/ Product Development Group llc: http://www.pdginnovation.com/what.htm Quest Development Group: http://www.qdgnet.com/home Slingshot Product Development Group: http://www.slingshotpdg.com/

Contact Information:

Carr & Ferrell LLP

2200 Geng Road Palo Alto, California 94303 Phone: 650-812-3400 Fax: 650-812-3444 CarrFerrell.com

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