Linking Utah's Innovation Community
Frequently Asked Questions
The 4th Quarter round (noon MT, Monday, January 3rd) is now closed. Should we resume the program in the future, we will announce it on this website, and through our e-Connections newsletter.
Does it cost anything to apply?
There is no charge to apply for a USTAR Technology Commercialization Grant.
What is the application deadline?
Jan. 3, 2011 at 12:00 noon MT.
What protection of intellectual property does the program offer?
The responsibility rests with the applicant and you must weigh what is best and most prudent for you. First of all, we ask that you provide informative descriptions of your technology, without disclosing confidential aspects.
USTAR will not use, and does not have any rights in, any applications, except for the purposes of conducting and promoting the TCG program.
USTAR cannot guarantee the confidentiality or security of the intellectual property rights of any applicants and cannot control the use of the ideas or concepts within any applications by third parties.
Each applicant will be solely responsible for any protection or enforcement of intellectual property rights relating to applications submitted by such applicant.
Can a higher education faculty or staff member submit more than one application?
Yes, however our intent is to drive innovation at multiple institutions. We recommend you put forward your most compelling request.
Must a faculty member applicant have an industry co-applicant?
No, you can apply solely as a faculty or staff member. However having an industry partner may be viewed as evidence of a stronger business case by the USTAR directors evaluating applications.
Can a co-applicant only be a company or may other third parties co-apply?
This program also applies to independent entrepreneurs or inventors, non-profits, private institutions of higher learning, or other entities willing to work with faculty at a public institution.
Our business has a promising innovation however we need help prototyping it. If we find a regional higher ed faculty to help us, will that be considered a valid application for a grant?
Yes, we want to encourage bringing new products to market regardless if they originate on campus or in a company. An important factor is the collaboration between “town and gown.”
My business is interested in applying, but we don’t have a contact at a regional higher ed institution. Can we still apply?
Without a higher education faculty or staff “lead,” we’ll consider the application incomplete. Because the funding comes via the federal Department of Education through Title XIV – State Fiscal Stabilization Fund – of the American Recovery and Reinvestment Act (ARRA), there has to be a close link with an educational institution for us to consider an application.
Who should our business contact at the regional higher education institutions if we don’t have an existing faculty with whom to work?
First of all, email USTAR at ustarinfo@utah.gov with a brief description of your innovation. We may know the right faculty for you to contact. Or you can call the institution directly. To learn about the programs and departments at the various institutions, we recommend the following resources:
If I'm a faculty member at the University of Utah or Utah State University, may I apply to this program?
No, however we encourage you to contact the technology commercialization offices at each institution for more information on similar programs:
-U of U Technology Venture Development, 801-587-3836
-USU Technology Commercialization Office, 435-797-9607
- U of U VP of Research Office, 801-581-7236
What is the review process?
After USTAR staff screen applications for completeness, USTAR Technology Outreach directors will do an initial rating primarily based on, but not limited to, the following criteria:
How are the criteria weighed?
USTAR evaluators use the following guidelines on a 0 to 5 scale, with 5 being the highest:
Technical merit and innovation
0 = many substitutes or competitors exist, not likely to be protectable in terms of patents and copyrights
5 = protectable, disruptive technology that overcomes a serious market pain point
Management team
0 = no team is in place to take this technology to market
5 = employees or advisors with relevant domain and functional expertise are in place
Market potential
0 = market is poorly defined or small (less than $10 million)
5 = large, well-defined market (over $100 million) with accessible sales channels
Financial viability
0 = low margins likely, little chance of raising additional funds to grow the business
5 = high profit margins, will be attractive to outside investors
Overall assessment
0 = no direct ties to USTAR / regional focus areas, low likelihood of creating jobs
5 = good fit with USTAR / regional focus areas, high likelihood of creating jobs
We must also stress that the overall intent of the USTAR TCG program is to foster the growth of companies pursuing technologies with productization potential vs. companies that are essentially service providers.
What is the timing of the review and award process?
After the initial screening, USTAR Technology Outreach directors may request finalists to give a formal presentation with additional information upon request, sometime in the month following the application deadline.
USTAR directors will present their recommendations for funding to the USTAR Governing Authority Board two months after the deadline closes. Final granting authority rests with USTAR's Governing Authority. Funding amounts may vary from those requested in the finalists’ applications.
It is anticipated that $30,000 will be the typical amount awarded. These are strictly guidelines and the Governing Authority reserves the right to reward more or less than these guidelines, including making no awards in a given cycle.
Who receives the funds when awarded?
USTAR will disburse funds directly to the sponsoring regional higher education institution on a monthly invoice basis. The institution will in turn disburse them to the faculty member through the institution’s standard grant accounting process. USTAR will not transfer funds directly to faculty or co-applicant companies.
Co-applicants should have a clear and mutual understanding of how they will handle shared expenses, potential revenues, intellectual property rights, and other business aspects before submitting an application to this program.
Is there a time limit on the funds?
Yes, to avoid losing unspent funds, for the Sept. 30 and Dec. 31, 2010 rounds, all funds must be expended by June 30, 2011.
Who owns any capital equipment purchased through the grant?
Any capital equipment purchased through the grant becomes the property of the public institution of higher learning, in accordance with appropriate federal guidelines.
Is there a quota for funding associated with different institutions or regions of the state?
No, the TCG funds are essentially a statewide “jump ball.” The primary intent is to identify the most promising opportunities regardless of origin. We do anticipate that vision and creativity are well represented around the state and that, in the long run, funds will be distributed in a diverse manner.
Is it suitable to apply for TCG funds to support basic research?
No, TCG funds are for commercialization activities.
Since these funds originate with the ARRA, what ongoing reporting requirements are there?
Monthly reporting requirements essentially entail tracking the number of new jobs created or existing jobs saved through the funding, plus normal accounting of expenditures. The reporting period is likely to extend a year or more from award date. USTAR will make a best effort to ensure reporting requirements are reasonable and not burdensome. A detailed packet will be provided awardees when they meet with USTAR staff after our Governing Authority makes their final determinations.
Does a grant award come with USTAR services as well?
USTAR reserves the right to offer commercialization guidance to winning applicants. Those applicants we do end up working with will most likely be technologies and companies in USTAR’s primary focus areas of:
USTAR also reserves the right to publish non-confidential TCG program success stories in the media. USTAR’s marketing and communications director will work with winning applicants to ensure appropriate media coverage of success stories.
If an application is selected, does USTAR take any equity position or receive licensing revenue in any future commercialization?
No, however if the grant leads to successful commercialization, the commercializing entity will be expected to repay the original grant amount in full to the sub-recipient public institution of higher learning. This is in keeping with the philosophy of the USTAR Governing Authority that the grant program should generate returns that can be reinvested in further commercialization efforts across the state.
A commercializing entity is deemed to be the vendor or a subsequent industry partner (business or individual) that licenses, purchases, receives, or otherwise obtains the rights to commercialize or manufacture the Product, Service or Process.
If commercialization occurs successfully, what is the repayment process?
If you successfully commercialize, or help a third party to commercialize a Product, Service or Process, you shall reimburse the institution for the amount of the grant.
Successful commercialization is defined as the generation of $1 million in annual Adjusted Gross Sales Revenues or $100,000 in annual net income, whichever comes first. If the grant leads to the establishment of a commercially successful business, the commercializing entity shall repay the original grant amount in full to the public institution of higher learning (aka sub-recipient). The intent is to have these repayment funds deployed for further institution-based technology commercialization efforts.
The successful commercializing entity shall reimburse the institution by the end of the following fiscal year.
If the vendor does not repay the full amount of the award within one fiscal year of successful commercialization, the vendor shall instead pay the institution any unpaid balance of the award, plus an additional amount equal to 30 percent of the unpaid award balance.
What happens if no commercialization occurs?
If you and USTAR agree in writing that no Product, Service or Process can be commercialized from the Technology or related Intellectual Property developed under the Project, no repayment of the award shall be required.
Any other issues regarding payback?
If the commercializing entity successfully commercializes a Product, Service or Process from the Technology or related Intellectual Property developed under the Project, and fails to notify USTAR, or if the vendor licenses, sells, donates, or otherwise transfers the rights to commercialize or manufacture the Product, Service or Process to any individual or company and fails to notify USTAR of such transfer, the vendor shall pay the sub-recipient an amount equivalent to two times the award funds received by the sub-recipient under this Agreement within 90 days of the transfer.
How many awards did USTAR make in the prior rounds?
See www.innovationutah.com/round1grantwinners.htm for details.
May we attach additional information to our application?
Yes, you can send additional documents to ustarinfo@utah.gov, however please restrict these attachments to 500 words or less of text and no more than three images (pictures, diagrams, graphs etc.). USTAR will focus on the official application and may or may not choose to review additional documents.
What if I have further questions?
Please contact ustarinfo@utah.gov or call 801-538-8879.
Revised: Jan. 3, 2011