Innovation Fund - Funding Option A

Innovation Fund - Funding Option A ("A" Award)

Geographic Scope: Northeast Ohio (21 counties); applicants must be located in and remain in Ohio

Focus Areas:

• New/innovative technology in high-growth industries as defined by Ohio Third Frontier Program
• Proof-of-concept stage companies
• Late imagining-stage opportunities

Award Purpose:
Designed to "prove the technology" through:

• Finalizing the prototype
• Conducting additional research and testing
• Filing a patent
• Prototyping, trials, and validation of new technologies

Eligibility Requirements:

• Business must be located in and remain in Ohio
• Developing new technology in high-growth industries
• Business/technology must be in proof-of-concept/startup phase
• Early-stage: typically pre-revenue with fewer than 5 principals
• First investment after entrepreneur's personal assets expended but before outside firm investment
• Must have passed family and friends capital-raising stage
• Must attend mandatory Innovation Fund 101 Information Session

Mandatory Requirements:

• Provide 1:1 dollar match for award (must match funds dollar-for-dollar, doubling impact)
• Provide educational experience for student and/or faculty
• Agree to mentoring through GLIDE and/or regional partner
• Agree to Convertible Debt instrument
• Portfolio companies expected to use award within 6 months
• All portfolio companies required to offer educational experiences to students (presentations, guest speaking, classroom instruction, informational interviews, job shadowing)

What They Fund:

• Innovative and cutting-edge technologies
• New applications for existing technologies
• Companies with unique value propositions

What They Don't Fund:

• Non-technology companies
• Companies outside Ohio
• Companies that haven't completed family/friends funding stage
• Companies that have already received outside investment

Organization Background:

• Innovation Fund established 2007
• Administered by Great Lakes Innovation and Development Enterprise (GLIDE)
• Nonprofit organization
• Part of Lorain County Community College ecosystem
• 289+ companies funded
• $19.275 million total funded
• 1,250+ jobs created
• 445+ students engaged

Application Process

Step 1: Attend Mandatory Information Session

• Required before applying
• Free Innovation Fund 101 session conducted by Innovation Fund team
• Sessions typically last up to one hour
• Cover background, goals, impact, awards, timeline, and process
• Currently conducted via online meetings
• Sign up required (no upcoming sessions scheduled

Step 2: Online Application
The application consists of two sections:

Business Requirements Section

Applicants must answer questions including:

• Information about the business concept
• Technology focus
• Business vision (sales, profit, employees, location)
• Commercialization phase
• Timeline
• Essential activities
• Target market
• Proposed educational opportunity
• People (who is involved and backing the company)
• Plans for use of the award

Financial Requirements Section

• Complete Excel-based spreadsheet
• Create required financial projections
• Develop assumptions and financial models
• Create balance sheets and income/cash flow statements
• Innovation Fund provides support for developing financial projections
• Experts available to coach applicants on presenting/defending models

Step 3: Prepare Materials

• Pitch presentation (typically PowerPoint or PDF format)
• Innovation Fund provides detailed outline of pitch requirements
• Regional Entrepreneurs-in-Residence (EIRs) available to help craft presentation materials
• Financial workbook completion assistance available

Step 4: Screening Committee Review

• Applications reviewed during quarterly cycles
• Innovation Fund Screening Committee reviews all applications
• Committee comprises members from higher education, regional economic development partners, private industry, and Entrepreneurs-in-Residence

Step 5: Due Diligence Committee Decision

• Applications that pass screening presented to Innovation Fund Due Diligence Committee (DDC)
• DDC comprises approximately 15 members with private sector experience in technology and business startups
• DDC makes final funding decision

Application Submission:

• Online application portal
• Save progress regularly
• If having trouble submitting finalized application, save progress and email julie@glideit.org for assistance

Key Application Notes:

• Applicants may submit ONE application per investment cycle
• Applicants must apply for the award most appropriate to their stage of development
• Many entrepreneurs apply multiple times before securing funding
• Feedback provided even if not selected for funding
• Rejected applicants partnered with regional EIR to refine business idea and re-apply

Required Resources:

• Downloadable financial information templates (available after account registration)
• Regional Entrepreneurs-in-Residence for guidance
• Support for developing financial projections
• Mentorship and coaching available