Purpose and Use of Funds
The purpose of the SAMMI Fund is to promote local economic development by providing financial assistance to early-stage local companies engaged in the development of products and technologies that support military medical requirements, as well as having the potential for broader civilian markets. Funds could be used for, but are not limited to, the following:
- Continued research or proof of concept studies;
- Completion of a prototype;
- Fees for filing patents;
- Market research;
- Travel expenses to present at meetings/conferences or to seek additional funding; and
- Hiring of temporary employees/interns for research and development assistance.
The following are some of the applicant qualifications/criteria that will be taken into consideration when making funding recommendations to the SAEDC Executive Director and the SAEDC Board:
- A local company with a proven innovative technology and/or intellectual property that supports a military medical life science requirement and has the potential for commercialization.
- Prior funding/investment in the company is preferred. If this is a first financing, awards will favor companies who can provide some matching funding.
- Must have an experienced management team. Preference will be given to companies with a presence of veterans on the management team and/or among the founders.
- Must have a well-developed business model and sound business plan to include a planned exit strategy.
- The existence of local business activities or the commitment to locate business activities, including full time jobs, in San Antonio.
- Long term potential for the creation and maintenance of high-wage jobs as defined in the City’s Strategic Plan for Economic Development.
Nature of the Investment
The funds (up to $50,000 per company) will be awarded utilizing a Convertible Promissory Note with a three-to-five-year term depending on the amount of the loan and current stage of the company. The Note will include an optional conversion feature that allows the SAEDC to secure equity under certain circumstances. The Note will also provide the SAEDC the option to have the Note repaid with interest in lieu of issuing equity to the SAEDC. Funding will occur in tranches; for example: 50% disbursement at signing of the Note, 40% at successful completion of a significant previously agreed-upon project milestone and the final 10% due upon delivery of a final report. The specific terms of the Note will be determined on a case-by-case basis, depending on the maturity of the company and other factors.
Materials submitted as part of the application will be treated as non-confidential. Once an application has been provisionally approved and due diligence is begun, confidential information may be requested from the applicants. Any information disclosed may become subject to the Open Records Act, unless excluded from disclosure by the Texas Attorney General.
Application, Evaluation and Approval Process
The Fund will be managed by the SAMMI Director with input from a Community Advisory Committee comprised of leaders in academic, not-for-profit and private sector entities.
The first step in the application process will be the submission of a one-page Statement of Interest not to exceed 4000 characters (including spaces). The Statement should include the following information:
- Nature of the medical need the applicant proposes to address with emphasis on potential benefit to the military medical community
- Background information on the applicant company, its senior management team and stage of development of the company and its technology.
- The applicants proposed approach to addressing the un-met need (including whether proprietary technology will be applied and the anticipated size of the market).
- The amount of funding being sought and the proposed use of funds, including the timeline for completing the proposed work.
Initial applications will be reviewed and those applicants whose submissions are provisionally accepted will be asked to make a more comprehensive and detailed presentation to the Advisory Committee. Additional information may be requested following the presentation in order to enable the Committee to conduct due diligence and evaluation.
The SAEDC intends to solicit applicants twice a year. Following review and evaluation of applications, recommendations will be made to the SAEDC Executive Director and the SAEDC Investment Committee before presenting funding recommendations to the SAEDC Board for final approval.
The amount of investment in any one project will be determined based on the value of the technology/product to military medicine, the potential for commercialization, the needs of the applicant(s), the potential economic impact of the project in terms of jobs and investment, the level of local investment and partnership with local entities, the potential for long term success and growth of the company in San Antonio and the potential impact of the project on the entrepreneurial ecosystem.
Deliverables and Metrics
The recipient of any funds must commit to begin spending the funds within six (6) months of the award. Mutually agreed-upon deliverables will be established for each award and will vary depending on the nature of the technology and the scope of the proposed work. Specific terms for payment of funds and deliverables will be included in the funding agreement.
Recipients of SAMMI funding will be required to provide quarterly written progress reports to the SAEDC until project completion, at which time a final report will be delivered.
Deadlines for submission of one-page Statements of Interest are due by midnight on 30 April 2020 and 31 October 2020.
Best efforts will be made to notify applicants of SAEDC’s intent to fund on 1 Jul 2020 and 1 Jan 2021.
HOW TO APPLY
Please submit questions about the fund or Statements of Interest (before the deadlines listed above) via email to the SAMMI Director. Potential applicants are encouraged to participate in one of two online informational seminars to be presented on Thursday, April 9 from 2-3 pm or Tuesday, April 14 from 10-11 am. Please indicate by email which of these sessions you'd like to attend in order to receive more information.