The North Carolina Biotechnology Center's Technology Enhancement and Acceleration Model (TEAM) loan program provides up to $50,000 to support commercialization and new company inception for technologies emanating from a North Carolina university or research institution.
This financial support, critical to a company's start-up, is only one component of this program. TEAM-eligible technologies also receive in-kind contributions from statewide and regional service providers (stakeholders). To become a TEAM Certified Stakeholder, register online.
Stakeholders may include accountants, CROs, financial institutions, mentoring programs, and corporate and IP attorneys. The TEAM loan is intended to leverage the contributed stakeholder services, in order to provide structure and foundation for a new company's inception.
TEAM Eligibility
To be eligible for the TEAM loan and for entry into the BATON program, a technology with spin-out potential must meet the following criteria:
- Be biotechnology-related
- Be ready for commercialization (not a research project)
- Have proprietary intellectual property (IP patents filed, either full or provisional)
- Have IP that is not yet assigned, licensed or optioned to an existing company or entrepreneur
The application process is explained in further detail here.
Use of TEAM Funds
The TEAM loan may be used solely for expenses associated with company inception activities not provided or discounted by TEAM stakeholders.
Appropriate uses of funds include:
- Down payments on approved laboratory incubator space or office space;
- Routine office supplies;
- Activities such as SBIR/STTR outside consultant assistance;
- Investment-related travel;
- Venture conference attendance;
- Business plan development;
- Post-Interim CEO salary and recruitment expenses.
No single activity can be used for more than 20 percent of the value of the loan.
Unauthorized uses include: office furniture, fixtures or computers; laboratory equipment, supplies or resources; technology development activities; licensing fees; IP fees incurred to date; salaries (except as indicated above); or other non-inception activities.
Distribution of Funds
The loan is executed with the company CFO. Loan distribution will be accomplished on the following schedule:
- 50 percent upon signing of all funding documentation
- 40 percent upon initial 50 percent being expensed (copies of appropriate invoices/receipts must be submitted to the North Carolina Biotechnology Center for verification)
- 10 percent upon initial 90 percent being expensed (copies of appropriate invoices/receipts must be submitted to the North Carolina Biotechnology Center for verification)
Goals of the TEAM/BATON Programs
- Create a viable corporate structure independent of the university
- Engage entrepreneurial support from the community
- Define the role of the academic scientific founder within the company
- Identify and engage an experienced entrepreneur as interim CEO of the company
- Obtain an option to intellectual property from the university
- Access relevant industry expertise to corroborate the product and market opportunities for the technology; triage these opportunities on the basis of available expertise, intellectual property, regulatory and development timelines, and funding requirements/availability
- Create a milestone-driven plan and stage-specific funding requirements
- Obtain an independent assessment of the IP to suggest freedom-to-operate and inform IP strategy moving forward
- Capture the corporate vision in a business plan