Pittsburgh Life Sciences Greenhouse Early Stage Fund (ESF) Applications are accepted on a rolling basis It is strongly advised that potential applicants contact the PLSG to discuss eligibility and other guidelines prior to submitting a proposal. Announcement
The following information regarding applying for and receiving an Early Stage Fund investment is intended to provide guidelines for potential applicants to the program. It is not necessarily exhaustive and does not create any contract or any enforceable rights on the part of any applicant. The Pittsburgh Life Sciences Greenhouse (PLSG) retains the right to revise or otherwise change this information and to invest or to not invest funds based on these or other considerations consistent with the reasonable and lawful exercise of its judgment. All investments are subject to the terms of the investment documentation, acceptable to the PLSG and consistent with any and all applicable statutes, regulations, and institutional policies.
Applications are solicited from early stage companies. The company should exhibit the clear potential to significantly and positively impact the regional economy.
Purpose of the Early Stage Fund One of the key strategies of the PLSG is to nurture and accelerate the formation and development of entrepreneurial life science ventures as a means of building a stronger industry base in southwestern Pennsylvania. The Early Stage Fund (ESF) is a competitive funding program designed to further the PLSG's mission of creating local economic benefit. The intent is to provide pre-seed capital to very early stage companies that will develop the technology and business necessary to become better candidates for follow-on investments. A primary consideration for funding is the likelihood of creating regional economic benefit. The Early Stage Fund, bridging the gap between discovery research and Seed funding, is expected to act as one of the initial investments into the company. Eligibility Proposals must be submitted by an early stage company within the thirteen county southwestern Pennsylvania regions (Allegheny, Armstrong, Beaver, Bedford, Butler, Cambria, Fayette, Greene, Indiana, Lawrence, Somerset, Washington, and Westmoreland). An early stage company is defined as a company that has raised less than $2.5 million in investments outside of federal or state grants. The company must demonstrate availability of facilities and resources available to complete the proposed milestones.
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Use of funds Typical investments range from $100K - $150K in total costs of PLSG monies with maximum PLSG participation of $500K and left at the discretion of the Executive in Residence (EIR). Investments require a 1:1 match, which may be cash or in-kind (personnel time, equipment use, materials, software or reduced overhead). Costs incurred for this project are allowed to be back-charged for up to 30 days from the day of execution of the investment agreement. Funding for personnel and consulting costs must be expended within southwestern Pennsylvania. Exemptions may be granted in the PLSG judgment with justification and evidence of best attempt to hire a regional professional. The PLSG will review this request and provide written approval. PLSG monies may not be used to retire accrued debt. Once a proposal has been approved for investment, the scope of work and any other material component of the proposal may not be changed without written approval from the PLSG. Terms Prior to the release of funds, PLSG will execute appropriate agreements with the company. Such agreements will specify, among other requirements, use of funds, reporting requirements, and quantitative milestones. The final duration and level of funding for individual projects will be determined by the PLSG. The investment will be made in the form of a convertible promissory note. All agreements required by the PLSG need to be executed within sixty (60) days of notice of investment. Immediate and full repayment will be required if the company moves a substantial portion of its operations from the thirteen county southwestern Pennsylvania region during a period of five years following the initiation of the project. Submitting a Proposal Individuals interested in applying to the ESF program are encouraged to contact the Program Manager prior to submitting a proposal. At this time, a meeting with appropriate senior PLSG Staff will be scheduled to discuss the technology, project and review eligibility, guidelines and mission of the program. Moving forward, each prospective applicant is assigned for case management to an EIR who serves as mentor and liaison. The EIR will work closely with the company to ensure the project meets all eligibility criteria. Companies shall apply to the Early Stage Fund by submitting: a. A completed cover sheet b. A business Plan, including the following sections at a minimum: Executive Overview, Market Analysis, Marketing Plan, Competition, Intellectual Property, Financials Applications must be submitted electronically. Note that the signed cover sheet must be sent as hard copy to the Program Manager’s attention.
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Selection Process and Criteria PLSG intends to subject proposal applications to a multi-stage review process, including 1) internal and external review of the business plan, budget and project milestones and 2) the recommendations of the PLSG's Investment Advisory Committee. Screening and mentoring by Executives in Residence (EIR): Each prospective applicant is assigned to an EIR who serves as mentor. The EIR and Program Director work closely with the company management to ensure that the proposal meets all eligibility criteria and mission of the program. At this stage, the application is considered a ‘draft application’. The team working with the company will look at criteria such as but not limited to: 1. 2. 3. 4. 5. 6. 7. Market opportunity and needs; Product/Service description; Competitive advantage, value proposition; Competitive threats; Market strategy; Sales and distribution; and Intellectual Property protection
Once the EIR validates that all criteria have been met, the application will be accepted as a ‘formal application.’ Review by external sources: External consultants will review the application for commercial potential, benefits and risks of the technology, stage of development, job creation potential, as well as the criteria listed above. If the application receives favorable review and meets all eligibility criteria, the applicant company will be invited to make a presentation on the project to the PLSG Investment Advisory Committee. The Investment Advisory Committee will make a funding recommendation to the PLSG for final funding approval. The final funding recommendation will be submitted to the PLSG Board of Directors prior to the announcement of investment by the PLSG. Additional due diligence: A project recommended for funding may undergo additional due diligence assessment prior to the Investment Advisory Committee making a final funding recommendation. Information gathered during the due diligence process may be shared with other investment organizations such as, but not limited to, Idea Foundry, Innovation Works, UPMC Health Ventures, PA Early Stage, and New Spring. The PLSG reserves the right to select for investment, all, some or none of the proposals received. The PLSG also reserves the right to select portions of individual proposals for investment. Project Investment and Management The PLSG will monitor progress of each project, schedule periodic reviews, and facilitate interaction among project participants and PLSG as appropriate. Recipients of the investment will be required to submit reports in a format specified by the PLSG and following the approved milestones. Funds will be distributed in according to approved milestones. The final report may also include a presentation to the PLSG. The recipient of the investment will also agree to respond to a periodic survey by the PLSG and disclose follow-on funding and commercialization activity that results from the PLSG-funded project.
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Contact information All questions and correspondence concerning this funding program and solicitation should be directed to the following point of contact: Uwe Winzen, Ph.D. Programs Manager, Pittsburgh Life Sciences Greenhouse 100 Technology Drive, Suite 400 Pittsburgh, PA 15219 Phone: 412-770-1647 Fax: 412-770-1276 Email: uwinzen@plsg.com
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