About the BioAccel™ Commercialization Programs
The BioAccel™ Commercialization Programs were created to fill the expertise and financial gaps that prohibit important technology from being developed and commercialized (see Figure 1). The BioAccel™ Commercialization Programs are designed to support important, peer-reviewed, life science projects that are assessed to be commercially viable but need further development to achieve that outcome. The programs build upon the philosophy of venture philanthropy as a mechanism to bring resources to the Life Sciences and are focused on stimulating and accelerating technology development. BioAccel's™ approach to venture philanthropy is milestone-based and outcome-driven. This results-oriented approach utilizes a strategic and rigorous review process that includes Project Management best practices to facilitate the development and commercialization of the most promising projects.
BioAccel™ will also provide business support to The BioAccel™ Commercialization Program-supported projects such as creation of business plans, project management, identification of facilities, identification of additional capital, and new company formation.
The BioAccel™ Commercialization Programs will enhance economic development in Arizona by providing capital and expertise that is not typically and/or easily accessible. These additional resources are expected to significantly increase the value proposition of the selected technologies. Successful project outcomes will attract funding from downstream investors and will create jobs through new company formation.
Funding Focus
The BioAccel™ Commercialization Programs will support a portfolio of novel discoveries in the Life Sciences that are screened through a rigorous independent review process. The program will target technologies that are poised for proof of concept, prototype development and/or preclinical studies. The major areas of focus are diagnostics, prognostics, therapeutics, medical devices, tools, and services within the Life Science sector. BioAccel™ anticipates supporting ~10 projects each year with an estimated $1.5M available annually.
There are two related programs within the BioAccel™ Commercialization Programs:
The Discovery Development Program (DDP)
The New Venture Development Program (NVDP)
Discovery Development Program (DDP): This program provides funding for late-stage research projects that have progressed to a point where a potential commercial product can be envisioned, but additional development efforts are required to confirm or validate the initial discovery and commercial potential. Projects that require proof-of-concept, validation and prototype development are examples of projects eligible for DDP funding.
BioAccel™ will also provide business support to BioAccel™ Commercialization Program projects such as creation of business plans, project management, identification of facilities, identification of additional capital and new company formation. BioAccel™ will provide management and oversight to these projects to assure accelerated outcomes that are focused on specific milestones. A typical DDP project should require less than $100,000 and be completed within six months. The expected outcome of a successful DDP project is the validation of the technology which leads to the launch of a new company and/or execution of a license to a third party.
In exchange for DDP support, BioAccel™ requires that successful applicants use BioAccel™ for additional commercialization efforts for the supported technology. Graduation from a DDP program will result in the applicant being eligible for NVDP support.
New Venture Development Program (NVDP): This program is directed toward the creation of new companies that have technologies that have graduated from the DDP and show clear commercial potential, as well as very early-stage companies that have just launched but require management, technology development and funding support to be a viable venture. The NVDP will provide assistance in launching the company, forming the management team, identifying capital and facilities, and providing mentorship for the entrepreneur through the initial stages of the company formation.
NVDP financial support could include up to $300k. The expected outcomes of a successful NVDP is the creation and development of new companies that create new jobs, attract additional capital by increasing the value of early-stage technologies, future public access to the technology, and potentially provide tax revenue for the State.
New companies formed and/or receiving BioAccel™ Commercialization Program support will be required to locate a significant portion of their operations within Arizona-designated Enterprise Zones* and will engage university-level interns through the BioAccel™ Internship Program and hire underemployed Zone residents whenever possible.
While not the primary objective of the NVDP, should any of these companies become successful, BioAccel™ will attempt to recover its funding plus a modest return through a combination of equity in the new companies, profit sharing, etc. As an evergreen fund, all of these monies will support BioAccel™ operations and the BioAccel™ Commercialization Programs.
* A map of the Enterprise Zones can be found by clicking here.
