Grant and Contract Services - Emerging Technology Fund (FAQ)

Q: How is Chapter E different from Chapter D?

A: Submitting companies must have an active commercialization grant from a federal agency (i.e. STTR/SBIR) in place at the time of application. This element is not required for Chapter D.

If I am a current federal grant awardee, why should I apply to Chapter D when I can receive non-repayable grant or non-dilutive funds in Chapter E?

A: Companies that apply to Chapter E may only receive a 1:1 match (< 750K)) for up to 2 projects. For example, if a company has received Phase II funding of $500k for a single project, they may only request up to $500k. Companies needing a true “series A” round of funding will need more funds that RMG allows for.

What if the ETF advisory committee sees a deal that better fits Chapter D, but is submitted through the RMG (Chapter E) program?

A: The Governor is giving the ETF Advisory Committee the flexibility to recommend deals to the “best fit” pool of funds. If a deal better fits D as opposed to E, the committee has the discretion to make the change.

What if I or my company has research funding from a federal research agency or other non state funding source that is not SBIR, STTR or NIST ATP? Will the State match?

A: Yes, the State may still match, but equity in the form of a warrant may be required as a payback.

What about major research consortia projects, will the ETF fund those?

A: Yes, research grant matching awards will be prioritized for significant technology commercialization projects undertaken by industry in partnership with Texas public and private institutions of higher education. Strong preference will be given to those projects that leverage large federal matching grant opportunities and address critical industry needs that enhance the competitiveness of existing and new technology companies in Texas. While strong preference is given to federal matches, other non-federal matching sources will be considered.

What is the ETF’s definition of a major research consortia project?

A: The ETF can be used to attract projects of major national significance. Examples of these projects include Los Alamos National Laboratory, Galveston Laboratory for Infectious Disease Research, and the National Nanotechnology Initiative (NNI).

The ETF may be a proactive participant in recruiting such projects, including identifying funding partners, initiation, and active management. A Major Project probably won't look like existing projects or those currently under evaluation. Funding will be flexible and could exceed $10 million, when appropriate. Recruitment of a Major Project will be coordinated by the Governor's Office with assistance from the Lieutenant Governor's and Speaker's Offices, the Texas Emerging Technology Fund Advisory Committee, and proposal partners, e.g., state or federal agencies and private companies.

Will the State require equity in major research consortia projects?

A: No, these grants will be non-repayable awards and may involve funds from other sources, as needed, for a competitive package. The grants can be made to either the consortia or an institution. Other state funds may be included in a package, e.g., the Texas Enterprise Fund, Skills Development Fund, federal workforce funds, and institutional or other funds from public or private institutions of higher education. In addition, funding may come from agencies or institutions of other states or nations.

What about equity in SBIR/STTR projects, will the state require it?

A: No, these grants will be non-repayable awards. The only way a “company” can get non dilutive capital from ETF is to be part of a large consortia (the “large” portion of the E portfolio strategy), or to participate in a Federal commercialization program (SBIR and STTR).

Are there any other requirements to Research Grant Matching (Chapter E)?

A: Yes. Qualifying companies through SBIR/STTR or Research Consortia must have a Texas university as a primary partner in the project.