<< Back to Emerging Technology Fund

Recent Modifications to ETF Research Matching Grant Program

Below is a summary of the new guidelines extracted from the modified RGM application form. In summary, to bring you up to date the key changes and clarifications, and their resulting impacts are:

1. Any RGM funding award will be for not less than a one-to-one ETF match to external funding. Higher ratios, i.e., more external dollars per RGM dollar, will receive more favorable consideration for approval. Lower ratios will not qualify for ETF funding.
2. Only "consortium-led" (see definitions in attached document) applicant teams of three or more member entities (including at least one Texas institution of higher education "IHE") will qualify for 'non-payback' RGM funding, and must provide written confirmation from the awarding agency that the receipt of non-Texas funding for applied research will not occur unless a specified amount of matching funds is provided.
3. "Consortium-led" RGM applications will continue to be submitted directly to the Governor's office of Economic Development.
4. "Non-consortium-led" applicants must include at least one IHE and be requesting matching of non-Texas applied research funds; but the leading company must:
   1. As a "payback provision" agree to issue warrants for future equity in the company in exchange for the RGM funds as though the RGM award were an ETF "commercialization grant"; and
   2. Include proof of the associated current or pending external applied research funding, a business plan for the commercialization of the associated technology, information on prior investors, etc. per the modified RGM application.
5. "Non-consortium-led" applications will be submitted through the appropriate RCIC and initially evaluated at that level. Recommended applications will subsequently be forwarded for state-level evaluation.
6. The effects on previously submitted applications for RGM funding are:
   1. Applicants from the Dec 2005 round that have previously received notification of approval by the state ETF Advisory Committee must determine whether they are in the "consortium-led" or "non-consortium-led" category; but will not be required to submit new applications. They must, however, submit any additional information required for their category for addition to their proposal file, e.g. proof of external funds dependence on matching funds for consortia, business plan for non-consortia, etc. The completed proposals will then receive expedited evaluation for potential funding recommendation to the ETF Leadership.
   2. Applicants from the Mar 2006 round are required to resubmit their applications (in the appropriate category and on the newly-modified RGM application form) to meet the next regular ETF submittal cutoff (Sept 26, 2006).
7. The associated RCIC will provide 'pre-proposal' information, counseling and assistance to any prior or potential future RGM applicants in both the consortial and non-consortial categories.