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What does it take financially to start a company? Where does the money come from? According to the Kauffman Foundation, the majority of start up companies open their doors with less than $50,000 in start up capital. The funds come from a variety of sources including personal assets of the founders, friends, and family. Federal grant programs can fund hundreds of thousands of dollars to advance its commercial interests. The State of Michigan offers financial support for university start ups through a number of programs. Bank loans account for some start up capital, while formal venture capital funding accounts for small amounts of funding for early stage start ups. Below is information about a number of programs that you might find helpful. If you have questions or do not find the specific information you are looking for contact the Venture Development Office for assistance.
UNIVERSITY
WSU Research Enhancement Program
WSU Technology Transfer Office Invention Development Fund (IDF)
Selected inventions may be eligible for "gap" funding to support further development, proof of principle studies, prototype development or other activities which will increase the readiness of technology or make its transfer to industry more likely. The IDF is managed by the Technology Transfer Office (TTO) using monies received from previous technology transfer activities. Grants may range from $5,000 to $15,000 and there is a short turnaround to receive them. General criteria to apply for funding are:
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The TTO must have received a fully-written invention disclosure form and had an opportunity to ask questions about the invention during an Administrative Patent Committee meeting.
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The invention must be fairly well developed and close to commercialization. The purpose of funding is to demonstrate to prospective licensees that the technology is viable and that the licensee's development risk has been reduced. The IDF does not fund basic, NIH-type research projects.
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The invention must be protectable, preferably by means of a patent or copyright. The invention must also have a reasonable chance of being licensed and developed.
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A commitment from the researcher's department or college in the form of matching funds is required.
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The amount of the grant must be reimbursed out of future royalties or license fees to replenish the IDF and inventors must agree in writing that they will not receive a personal share of royalties until the expense is repaid.
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Grant applicants must provide a 1-2 page proposal with details about the goals of the project to be funded and projected outcomes.
STATE OF MICHIGAN
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Emerging Technology Challenge Fund (ETCF): $150K with 1:1 match -- annual submission
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MUCI Fast Track Funds (typically $2-10K with match required); no set deadlines
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Major Source of Michigan Funding:
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Up to $50M per year (program-wide)
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Basic research (50%); Collaborative development (40%); Commercialization (10%)
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Up to $15K match for SBIR awards
LOANS
FEDERAL GRANTS
The Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) grant programs, sponsored by several United States Government agencies, are excellent sources of funding for start-up companies. For detailed infomation on these pograms, CLICK HERE to go to our web page describing these important programs.
ANGEL & VENTURE CAPITAL FUNDING
OTHER RESOURCES
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Training
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Grant Review
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Start-up Consulting
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