May 29, 2013. Missouri Technology Corporation Public-private partnership created by the Missouri General Assembly to lead efforts to promote entrepreneurship

IDEA FUNDS OVERVIEW

May 29, 2013

Missouri Technology Corporation

Public-private partnership created by the Missouri General Assembly to lead efforts to promote entrepreneurship and foster the growth of new and emerging high-tech companies

Focus on 21st Century bioscience industries

related to Missouri’s rich history in agriculture Board of Directors includes individuals

appointed by Missouri’s Governor, Speaker of the House, and President Pro Tem of the Senate, and includes the President of the University of Missouri system and the Director of the Department of Economic Development

About MTC

Animal Health

Applied Engineering

Biomedical Science

Defense and Homeland Security

Plant Science

MTC Areas of Focus

Digital and convergence media

Information technology

Creative content

Clean energy

Advanced manufacturing

MTC Area of Focus – Applied Engineering

Missouri IDEA Funds

Missouri IDEA Funds

On March 22, 2011, Missouri Governor Jay Nixon announced the launch of the $21 million IDEA Seed and Venture Capital Funds initiative that will support the growth of entrepreneurs and high-tech companies.

6 competitive funding rounds completed 188 applications submitted $118.3 million in co-investment funds requested 69 authorized projects totaling $19.1 million in

IDEA Funds 32 companies closed and funded in excess of

$10 million raising leveraged capital in excess of $50 million

Missouri TechLaunch Seed Capital Co-Investment

Program Venture Capital Co-Investment

Program

High-Tech Industrial Expansion Program

IDEA Seed and Venture Capital Funds

Pre-Seed Stage Financing Accelerate the commercialization of research

discoveries

Experienced Leadership Industry/Technology Commercialization

Matching Funds At least 100% Close and Transfer in a Syndicate

Viable Plan for Follow-On Financing or Sustainability

Missouri TechLaunch Eligibility

Funds may be used for IP development and evaluation proof of concept work prototype design market studies related business activities

Typically issued as convertible debt

Missouri TechLaunch Awards

Seed Stage Financing Accelerate the commercialization of

research discoveries and growth of start-up companies




Seed Capital Co-Investment Eligibility

Funds may be used for advanced IP development and evaluation proof of concept work prototype design market studies key personnel hiring related business activities

Typically issued as convertible debt or equity

Seed Capital Co-Investment Awards

Venture Capital Stage Financing Accelerate the growth of start-up companies that

can be new Missouri-based corporate headquarters




Venture Capital Co-Investment Eligibility

Funds may be used for advanced IP development and evaluation proof of concept work prototype design market studies key personnel hiring related business activities

Typically issued as equity

Venture Capital Co-Investment Awards

Funds may be used for business expansion activities equipment construction key personnel hiring related business activities

Typically issued as secured low-interest debt

High-Tech Industrial Expansion Awards

Minimum of 1:1 cash match of new, private investment

Neither federal funds or in-kind contributions can be used as match to IDEA Funds

Matching funds to close in syndication with MTC investment

Matching Funds

MTC Investment Review Process

Applicatio

n

•Application

•Preliminary Staff Review

•Due Diligence and Scoring

Investme

nt Committee

Review

•Highest-ranked Applications Reviewed by Investment Committee (unless exigent circumstances)

•Funding Recommendations Issued

MTC Board

Review

•Board Considers Recommendations

•Final Due Diligence and Definitive Documents

Tracking Outcomes

•Awardees Report Outcomes for 10 years

•Contract Compliance

•Outcomes Monitored by Investment Committee

Questions