The Central Texas Regional Center of Innovation and Commercialization (CenTex RCIC) serves as a catalyst for emerging technology research, development, commercialization, and start-up incubation in Central Texas as part of Texas’ efforts to remain globally competitive. The CenTex RCIC is an enabler for coordinating the region’s research entities and technology firms in regards to the Emerging Technology Fund. The center focuses on integrating technology development and commercialization.

Serving a 15-county region, the CenTex RCIC accepts applications of commercialization and research grants from Bastrop, Bell, Burnet, Caldwell, Coryell, Falls, Fayette, Hamilton, Hays, Lampasas, Lee, Milam, Mills, Travis and Williamson counties of Texas.

The CenTex RCIC is managed by the Austin Chamber of Commerce under arrangement with the Office of the Governor of Texas. Members of this center’s advisory council include representatives from area technology and economic development organizations. The CenTex RCIC is dedicated to using these resources to provide the infrastructure to create the most effective innovation and ecosystem for technology companies in the world.

In fulfilling its mission, the CenTex RCIC :

• Cultivates collaboration between technology companies and researchers and the investment community,
• Identifies technologies within research institutions or companies that have market potential and could generate significant economic growth in Texas,
• Facilitates incubation and other services that accelerate the commercialization process,
• Acts as the operational platform for the submittal and management of commercialization project applications requesting grants from the Texas Emerging Technology Fund,
• Grows the innovation ecosystem in both Central Texas and the state.

• Isaac Barchas, Austin Technology Incubator
• Pat Cassidy, Texas State University
• Bill Covington, Texas State University
• John Doggett, The University of Texas at Austin, McCombs School of Business
• Neil Iscoe, The University of Texas at Austin, Office of Technology Commercialization
• Jeff King, Haynes and Boone
• Jamie McLeroy, SEMATECH
• Betsy Merrick, The University of Texas at Austin, Office of Technology Commercialization
• Bill Parry, Heart of Texas Defense Alliance
• Jamie Rhodes, Central Texas Angel Network
• Tyler Smith, Temple College
• Dan Sullivan, Austin Technology Council
• Danette Toone, Temple College

In June 2005, at the request of Governor Rick Perry, the Texas Legislature approved HB1765 creating the $200 million Emerging Technology Fund (ETF). The primary goals established for the ETF are:

• Expediting innovation and commercialization of research
• Attracting, creating or expanding private sector entities that will promote substantial increases in high quality jobs
• Increasing Texas higher education applied research capabilities

Governor Perry appointed a 17-member advisory committee to make recommendations to the Governor, Lieutenant Governor and Speaker of the House on collaborations, investments, research grants and recruitment associated with the ETF.

The ETF is made up of three components:

• Will it sell? Subchapter D – Commercialization Grants
• Will it work? Subchapter E – Research Grant Matching
• New Ideas. Subchapter F – Research Superiority Grants

Will it sell? Subchapter D Commercialization Grants are incentives for private or non-profit entities to collaborate with public or private universities on emerging technology projects with a demonstrable economic benefit to the state.

Priority for funding is given to proposals that, in some combination:

• Involve emerging scientific or technology fields that have a reasonable probability of enhancing this state’s national and global economic competitiveness;
• May result in a medical or scientific breakthrough;
• Are matched with other available funds, including funds from the private or nonprofit entity or institution of higher education collaborating on the project;
• Have a demonstrable economic development benefit to this state; or
• Guarantee commercialization or manufacturing in Texas if successful.

Additionally, the ETF prefers:

• To match prior cash equity investments (non founder, not in-kind);
• Deals that can NOT be covered by other state public policy mechanisms/funds;
• To follow same terms as lead investor;
• That ETF grants make a difference in the company’s success
• That the preponderance of jobs developed by a successful venture pay >$18/hr; and
• Other economic benefits identified by entity and tracked by RCIC % of payback can go to RCIC(s) that sponsored the deal.

In order to be considered for funding under the Commercialization Grants program (Subchapter D), all submissions should be a collaborative effort with a public or private institute of higher education in the state. This is in accordance with the intent specified in Sec.490.151 of the enabling legislation- "Sec. 490.151. USE OF MONEY FOR INCENTIVES. (a) Amounts allocated from the fund for use as provided by this subchapter shall be reserved for incentives for private or nonprofit entities to collaborate with public or private institutions of higher education in this state on emerging technology projects with a demonstrable economic benefit to this state."

Examples of collaboration include but are not limited to: licensing university technologies; contracting for sponsored research; teaming with a business school for market research or business plan development; developing university or community college internship/ training programs; and contracting for prototype testing.

Regional review panels made up of technology, commercialization, and economic development experts will score all valid proposals and nominate the top submissions to the Governor’s Office for further consideration by the statewide ETF Committee.

Download the Commercialization Grant Application here.

Will it work? Subchapter E Research Grant Matching are for consortia composed of Texas universities and for-profit businesses, matching non-State-of-Texas grants. These applications are to be submitted to the Office of the Governor:

Office of the Governor
Emerging Technology Fund
Attn: Mark M. Ellison or Alan Kirchhoff
P.O. Box 12428
Austin, TX 78711

For more information on the Subchapter E Research Grant Matching, visit the state’s website.

New Ideas. Subchapter F Research Superiority Grants are to be used to acquire new or enhanced existing research superiority (talent) at public institutions of higher education in this state. These applications are to be submitted to the Office of the Governor:

Office of the Governor
Emerging Technology Fund
Attn: Mark M. Ellison or Alan Kirchhoff
P.O. Box 12428
Austin, TX 78711

For more information on the Subchapter F Research Superiority Grants, visit the state’s website.

• Aerospace
• Biotechnology
• Computer & Software Technology
• Defense
• Energy
• Information
• Life Sciences
• Manufactured Energy Systems
• Medicine
• Nanotechnology
• Petroleum Refining & Chemical Processes
• Semiconductors
• Other Pursuits (as determined by the Governor in consultation with the Lt. Governor and Speaker of the House)

Applications:
Subchapter D Commercialization Grant Application

Submission Process: Send the completed application form and all required attachments (in electronic format) to: applications@austinchamber.com If your application and associated attachments are over 5MB in size, send the MS Word application and the attachments in separate emails.

Submission Fee: A $250 filing fee is required for each proposal submitted to an RCIC. Payment by check (made payable to GACC/Central Texas RCIC) is due at the time of proposal submission. The evaluation of a proposal will not proceed until payment is received. Payment must be postmarked on or before the quarterly submission deadlines. Pease send checks to:

Jan Riepen
GACC/Central Texas RCIC
210 Barton Springs Rd., Suite 400
Austin, TX 78704

Nomination Periods & Deadlines: The CenTex RCIC accepts proposals continuously; however, grants are awarded by the state on a quarterly basis.

Guidance: For further background: 1) Visit the Office of the Governor’s website, 2) read the ETF legislation (HB1765) itself (.doc), and 3) review the fund's Guiding Principles (.doc). The state has also issued a sample capitalization table (.pdf); a cap table is a required element of the new application.

The Central Texas RCIC is in collaboration with the regional workforce boards to facilitate interactions between emerging technology companies and regional workforce initiatives. Additional information regarding these boards can be found on each website:

Central Texas Workforce Development Board
Capital Area Workforce Development Board
Rural Capital Workforce Development Board

Our appreciation goes out to the IC² (Innovation, Creativity & Capital) Institute through the MSSTC (Masters of Science Program in Commercialization of Science & Technology) at the University of Texas at Austin and the law firm of Haynes and Boone for expert technology and commercialization reviews.

Commercialization Grant App. [UPDATED 8/08]
Guide to the Commercialization Application
ETF Applicant Workshop Presentation
Commercialization Application Checklist
Commercialization Grant Term Sheet
ETF Award and Security Agreement [UPDATED 7/14/08]
ETF Investment Unit [UPDATED 7/14/08]
ETF Investment Unit W/O Prior Financing Shares[UPDATED 7/14/08]
ETF PreSeed Award & Security Agreement [UPDATED 7/14/08]
ETF PreSeed Investment Unit [UPDATED 7/14/08]
Summary of Deal Terms [UPDATED 2/5/08]
"9 Step" Due Diligence Process
ETF Due Diligence Process
Pre-Seed Deals Information

Susan Davenport, Vice President, Business Retention & Expansion
512.322.5657
sdavenport@austinchamber.com

MK Holody, Director of Business Retention & Expansion, CenTex RCIC
512.322.5677
mholody@austinchamber.com

Send completed applications to: applications@austinchamber.com