About the Program
The University of Missouri System Enterprise Investment Program (EIP) is designed to support Missouri based early-stage high tech start-up companies working to commercialize technologies that originated on a campus of the University of Missouri System. The EIP provides early stage funding to accelerate company development and move it towards commercial viability and becoming a stronger candidate for follow-on angel or venture capital investment.
The Enterprise Investment Program currently has up to $2.8M available for investment. Investments in selected applicants will be made in the form of convertible debt with the total investment in a single venture not to exceed $500,000. Investments may be distributed to recipients in installments based on achievement of agreed upon milestones.
Through the Enterprise Investment Program, the University of Missouri System hopes to achieve the following goals:
- Accelerate the commercialization of University of Missouri developed intellectual property;
- Enhance a start-up company’s ability to attract additional investments; and
- Create and maintain sustainable high-paying jobs in Missouri.
1. Applicant must have a relationship with the University of Missouri in the form of:
◦a license, or in negotiations for a license, to university owned intellectual property. If in negotiations for a license at the time of applying to the EIP, a license must be finalized within 60 days of the close of the application period; or
◦rights to intellectual property developed at the university, but which is not owned by the university, that is being or will be commercialized by the applicant company.
Preference or additional consideration may be given to applicant companies that:
◦secure funding from additional sources (co-investments); and/or
◦operate out of, or make a commitment to operate out of, a university incubator or research park; and/or
◦have previously granted the university an equity interest in the company; and/or
◦make a commitment to employ, or procure through contract, the services of the university, its faculty, staff, or students.
2. The total investment requested, or when combined with prior investments under this program, cannot exceed $500,000.
3. A majority of the company’s assets and employees must be located in Missouri and the applicant must agree to maintain such majority during the funding period and have the intent to maintain a majority thereafter.
4. The EIP is directed toward startups and early stage companies. Therefore, an applicant company cannot have been in business greater than five years from the date of application.
5. Applicant must be a separate legal entity, such as a corporation or LLC at the time of applying to the EIP.
6. Applicant must agree to grant convertible debt with a fair market value equivalent to the amount of the university’s financial investment.
7. Applicant must agree to provide financial statements, progress reports and other appropriate information reasonably requested by the university.
8. Applicant must agree to accept funding in installments based on achievement of agreed-upon milestones.
9. Applicant must agree not to use any money received under the EIP program to make payments to the University of Missouri under the terms of applicant’s license agreement with the University of Missouri. Examples of such payments include, without limitation, license fee payments, minimum annual royalties, and/or reimbursement of patent expenses.
10. No current member of the UM System Board of Curators or General Officers may be a principal or anticipated principal of the applicant or have any other direct or indirect material financial interest in the applicant.
11. Any principal or anticipated principal of the applicant that is also an employee of the university must be in compliance with the university’s policy on conflict of interest.
Among other things, applications will be reviewed based on their overall quality and whether:
- an investment would achieve the stated business objectives and move the technology closer to market;
- the management team has the expertise to accomplish the goals set forth in the application;
- the market potential justifies the level of investment;
- the applicant has raised matching funds and/or will likely be able to attract follow-on investments;
- there is a reasonable expectation that the university will, at a minimum, receive a return of and hopefully a return on its investment;
- there is a potential to create jobs in Missouri; and
- the applicant has made a commitment to locate and maintain a majority of employees and assets in Missouri.
Application Review Process
An outside advisory panel representing key technology, science, business, and/or venture capital sectors will participate in the review of applications and make recommendations to the university. First round investment decisions will be made approximately 90 days after the close of the application period and final investment decisions will be made approximately 180 days after close of the application period.
- Applicant applies online via the EIP website (www.umeip.com).
- Application is screened for completeness, to ensure minimum requirements are met, and to identify any potential conflicts of interest or other university related issues.
- If no issues arise during the screening process, the application will go to the outside advisory panel for review.
- Based on feedback from the advisory panel, the university will select applicants to be given further consideration.
- If first round approval is granted, the applicant will be invited to make a presentation to the advisory panel.
- Following the presentations, the advisory panel will make recommendations to the university and the university will select applicants to be considered further.
- Due diligence will be conducted by the university.
- The university will make a final decision and will begin negotiations with selected applicants.
- Company milestones and funding amounts will be established.
- Final investment documents are executed.