The ETF, created by the Texas Legislature at the urging of Governor Rick Perry, provides Texas with an unparalleled advantage by expediting the development and commercialization of new technologies, and by recruiting the best research talent in the world. Matching and commercialization funds coupled with additional federal and outside investments foster new technologies in Texas.
Motivation for the Emerging Technology Fund (ETF):
· Expedite innovation and commercialization of research
· Promote a substantial increase in high-quality jobs
· Increase higher education applied technology research capabilities
Life Science Situation:
· Recognized funding “Gap” for early stage life science companies in Texas
· Texas: a national leader in medical research - but not in life science commercialization
· Early-stage companies need access to funding
Emerging Technology Fund History:
In June 2005, the Texas Legislature established an Emerging Technology Fund (ETF) with $200 million in state funds to be made available over the 2006-07 fiscal years. The ETF funds were designated to be allocated as follows:
§ $100 million to provide matching funds for the commercialization of new innovations.
§ $50 million for grant matching for the development of emerging technologies with substantial commercial potential.
§ $50 million for acquisition of “research superiority” for Texas higher education institutions by attracting additional established, high-profile researchers as faculty.
Central management of the ETF will be done through the Office of the Governor, with the assistance of the ETF Committee, a blue-ribbon panel of 17 individuals from around the state appointed by the Governor. In addition, seven regions of the state have been established, as shown on the regional map (link below). Each region will administer the program through a Regional Center of Innovation and Commercialization (RCIC) and one statewide center to review life science-related submissions.
New Legislation (HB 1188) - June 2007
·
Up
to
$175
Million
Authorized
-
$75
Million
New
Funding
- Up
to
$100
Million
of
Unexpended
Balances
·
Break-Down
-
Subchapter
D
(50%)
-
Subchapter
E
(16.67%)
-
Subchapter
F
(33.33%)
·
New
Features
-
Debt
and
equity
instruments
in
lieu
of
warrants
-
Overhead
funding
for
RCICs
Current Status (As of June 3, 2008)
Approximately $184 Million Currently Available
· Subchapter D (70%)
· Subchapter E (0%) - $18.5 Million Allocated for E’s in Current Pipeline
· Subchapter F (30%)
