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​This week Maryland Technology Council announced that the Maryland Senate and House completed their veto overrides of 2020 legislation Senate Bill 398/House Bill 514: Maryland Small Business Innovation Research and Technology Transfer Incentive Program was overridden.  
 
This bill establishes the Maryland Small Business Innovation Research and Technology Transfer (SBIR/STTR) Incentive Program, administered by the Maryland Technology Development Corporation (TEDCO). Generally, an eligible small business may apply for an award or investment of 25% of an SBIR/STTR grant, as defined, limited to $25,000 for Phase I funding or $75,000 for Phase II funding. TEDCO may make up to 20 Phase I distributions and 10 Phase II distributions per fiscal year. A special fund is established for the administration of the program. The bill takes effect July 1, 2021. https://legiscan.com/MD/text/HB654/2021

When can Maryland small business take advantage of this matching program? Sadly, my information from TEDCO is that while the legislation has passed, there is currently no funding to support the program.  However, TEDCO will actively seek funding to implement the program.  We will have to wait for a formal notice of program funding and a request for small business applications from TEDCO.

I just provided a webinar to the finalist groups in the Freedom from Cancer Challenge.  The topic was on competitive intelligence gathering necessary to put together the market slide and the competitive analysis slide that are expected in the 10 slide pitch deck. 

To the novice a 10 side deck might sound like something you can knock out after dinner, but that is far from reality.  I believe the best best pitch decks are distilled from a thorough well researched business plan.  It goes without saying that a 50 page business plan takes considerable effort to compile.  Concentrating that to 10-12 pages for most grants is a skill. Even more effort is necessary to hone back the most critical elements to a 10 slide deck.  Make that a 10 slide deck that lends itself to "business theater".  Your goal is to pitch a story that is  honest, inspiring, clear and memorable.  Paint the problem and provide a credible solution that will make money.  Leave your angels exited by your ideas and your team and your product and most importantly leave them willing to write a check.

I am very happy to share the news that the marketing databases are up and running again. The available databases have changed slightly.  New access includes:


Medical eTrack
             Full Access
Pharma eTrack
            Financial Analytics
            NPV Analytics
            Sales Analytics
            Therapy Analysis & Database
Frost & Sullivan
 
 
 Access is for the Maryland start-up community and by appointment only.
Locations and contact information are:
 
TEDCO7021 Columbia Gateway Dr., Suite 200
Columbia, MD 21046
Contact: Stephen Auvil
410-715-4166
 
Fast Forward East @ JHU Medical Campus in Baltimore Rangos Building
855 N Wolfe Street, (Ground level suite B)
Baltimore, MD 21205
Contact: Julie Simon
[email protected]
 
Germantown Innovation Center20271 Goldenrod Ln, Germantown, MD 20876
Contact: Janeth Orozco
[email protected]

Maryland's market research resources; Frost and Sullivan, Recap, Medtrack and BioMedTracker, are absolutely critical to maintain the Maryland healthy startup culture that has been so pain-stakingly nurtured by the State, TCM and TEDCO for biotechnology entrepreneurs.  The start-up community is currently at risk of losing this priceless resource as the State may not renew access on June 30.
 
Nearly ALL of my clients are State of Maryland entrepreneurs in the life sciences.  ALL of these clients need access to the marketing information as it is requested on ALL of the grants, presentations and pitches they make to obtain financing.  Clearly the State must recognize that marketing information is important or why would they ask for marketing and competitive analysis sections in the state supported MII, TCF and other grants?
 
I have worked with over 50 small biotech companies on various consulting efforts. Every one of these required a commercialization plan, and accessing the databases provided critical information and insights that would otherwise not be affordable for these scientists and companies. The State must have a huge return on investment for the databases.  The grant money alone is worth millions, plus there is a compound effect on the economy as these companies higher scientists and support staff, pay for facilities, equipment and materials and otherwise contribute to the State economy.
 
The market database information is imperative to be competitive on a national level for the multi-million dollar SBIR grants available from the NIH, DOD and NSF, among other agencies. The phase II SBIR all require a substantial and detailed commercialization plan.  All of the sections are much more meaningful and competitive when companies have access to the market research databases.
 
Selected Required SBIR Elements:

• Describe the market and/or market segments you are targeting
• Tell what significant advantages your innovation will bring to the market
• Explain the hurdles you will have to overcome in order to gain market/customer    acceptance    of your innovation.
• Briefly describe your marketing and sales strategy.
• Give an overview of the current competitive landscape and any potential competitors.
• Justifying Value of the Project
• Provide a Marketing Plan.

 
It is the goal of the state of Maryland to be one of the top three biotech hubs in the nation by 2023. According the NIH provided SBIR rankings MD is currently ranked 5th.   It will be imperative to provide the resources necessary for our start-up entrepreneurs to be competitive for non-dilutive funding.  SBIR phase 2, Fast Track and Bridge Awards allow start-up companies to develop their technology through proof of concept and sometimes even through phase 1 clinical.  This brings the company to a critical valuation inflection point where it is possible to obtain VC funding or even be an acquisition target.  To reach the top 3 by 2023, Maryland must submit more SBIR proposals and increase our funding success rate.  This will not happen if the market resources necessary for competitive commercialization plans are removed.
 
 
SBIR Phase II

     Number of Applications                      Number of Applications
            Reviewed                                               Awarded                         Success Rate        Total Funding
CA                106                                                      45                                      42.5%             $34,585,391
MA                 62                                                       27                                     43.5%              $20,420,888
PA                  27                                                      16                                      59.3%              $10,947,742
NC                 35                                                       13                                      37.1%             $10,135,990
MD                 28                                                      10                                      35.7%              $8,388,233


 
 
I thought the new governor was supporting MD small business?  Removing access to a REQUISITE resource for small business success will remove a linchpin required for our biotech hub ecosystem.  Removal of the databases will significantly lower the quality of MD start-up businesses/commercialization plans and their ability to raise funds.  Without the marketing databases supporting our non-dilutive grant base the State of Maryland will never be in the top-3 by 2023, and I would predict a fast fall from where we currently stand.
 
I urge biotech start-up stake-holders in Maryland to contact the Office of BioHealth
and Life Sciences in the MD Dept. of Commerce and tell them how important access to these data bases is for your business.  Also, contact TEDCO, as they may soon take over the responsibility for this service, summer of 2016.
 
Elizabeth Smith

There is a desire in the greater Washington DC area to move up to number three in the rankings of the nation’s great biotech hotbeds. As a bioscience business sector we should look at what we bring to the table to drive regional economic growth.  Dollars generated and aggregate job growth will gain more supporters across all sectors of business and government than any other yardstick.  From my vantage point, the bioscience sector core asset is innovation.  In fact, I embrace the concept that regionally our core asset is innovation across the aerospace, defense, energy, IT, cybersecurity and bioscience sectors.  The question then becomes how to capitalize on innovation?  Generally via patents being licensed into start-up companies.  A priori, start-up companies sound like small peanuts.  But it is NOT the case.  Small companies that make breakthrough innovations birth entire industries and millions of jobs. Even if the small co offers an  “incremental” advance there is a job multiplier effect when considering all the less skilled jobs that are necessary to support the innovator company.

My 3-steps to achieve innovation hotbed nirvana for our region: 

1)    Properly incentivize the Universities and Government Labs to open the floodgates and license out patents covering the innovations necessary to companies.

2)    Put an SBIR matching fund in place to complement federal investment at the MD state level.  There 14 states that have implemented such a program to great success of their start-up eco-systems.

3)    MD has the biotechnology investment incentive tax-credit at 50% of the investment.  This has been fabulous for both angel inventors and our start-ups.  We need a similar program to entice more VC level investing in our more advanced small cos.

Today I had the pleasure of attending the 2014 Entrepreneur Expo presented by TEDCO.   There were over 500 attendees who were all part of the vibrant Maryland start-up ecosystem. I had a great time networking with many of the biotech companies in attendance and was honored to be a MERL speaker in the “Meeting Movers, Shakers and Other Influencers” session for Life Sciences. I was also a panel member in the “Best Money In Town: Winning SBIRs” session. I counted six concurrent sessions running through the entire day, plus the open exhibit/booth hall. It was, in fact, impossible to take advantage of all the opportunities.  Next year I will have to send more people, to have ears at multiple sessions!

 

In his first public speaking engagement since election, Maryland Governor-Elect Larry Hogan made closing remarks at the Entrepreneur Expo.  He had very optimistic words for the start-up community. Saying, “You’re going to be a priority for us.  Something we are going to focus on like a laser beam. We are going to work very closely with TECDO; with all you great entrepreneurs in the room.  As of Jan. 21,  Maryland will be open for business.” I see this as an indicator that the new governor will support our start-up business  through TEDCO and other initiatives such as the Invest Maryland Challenge and the Maryland Innovation Initiative.

 

Kudos to TEDCO for offering such a top-notch event for the start-up community!

Last night I was at the Invest Maryland Challenge Finale Awards ceremony at the National Aquarium in Baltimore.  It was an inspiring event with nearly 1$million in prizes awarded to early stage companies.  Awards were divided among IT companies, Cybersecurity, Life Sciences and general and Governor Martin O’Malley was there to give out the four $100,000 grand prizes. I am so lucky to be living in a state that is incredibly supportive of start-up businesses and understands the economic returns of supporting early stage companies!   In the life sciences, Somax Consulting is supporting Harpoon Medical, ConverGene, and 3I with pro bono consulting services.  I am very excited by the products these companies are working on and their huge potential for improving healthcare in their individual segments. I wish them every success!

Yesterday I had the pleasure of presenting to the Biotech companies that are in the Germantown Innovation Center Incubator space.  Jerry Godwin, The Business Incubator Manger kindly gave me a tour of the space.  It has nice shared large equipment for biotech's as well as 11 wet labs and hoods.  There is some biotech space availability, which is lucky because the Shady Grove Innovation Center is shutting down this summer for repurposing (NIST will be a big future user with tech start-ups).  So, all the SGIC biotechs will need to find a new home, 24 wet labs will be gone.  MoCo and surrounds are sadly short on biotech incubator space. MoCo may be losing businesses to places like Baltimore's BioInnovation Center and Frederick Innovative Technology Center.  However, even worse, is when these inevitably fill up, our companies may have to look out of state for appropriate start-up facilities.