Build to scale

Entrepreneurs, especially technology entrepreneurs, flourish in healthy ecosystems. Technology-based economic development (TBED) grows ecosystems in which entrepreneurs can build and scale technology-driven businesses, which in turn create high-skill

EDA invites organizations that are aiding technology-based companies with high growth potential (including but not limited to startups) in developing the next generation of technologies to apply for Build to Scale Program funding. The Build to Scale program aims to: • build public and private capacity for entrepreneurs and innovators to invent, improve, and bring to market new products and services in critical, emerging, and transformative sectors and industries; • expand regional knowledge ecosystems to realize economic and job growth; • accelerate the growth of regional economies that are focused on industries of the future; • catalyze regional leadership through TBED strategies; • empower communities to provide proof-of-concept and commercialization assistance to technology innovators and entrepreneurs; and • increase access to capital for technology-enabled entrepreneurs. Under the Build to Scale Program, EDA is soliciting applications for two separate competitions: (1) the Venture Challenge and (2) the Capital Challenge

Entities that are eligible for funding include: • a State; • an Indian tribe; • a city or other political subdivision of a State; • an entity whose application is supported by a State or a political subdivision of a state and that is- o a nonprofit organization; o an institution of higher education; o a public-private partnership; o a science or research park; o a Federal laboratory; o a venture development organization; or o an economic development organization or similar entity that is focused primarily on improving science, technology, innovation, or entrepreneurship; or • a consortium of any of the aforementioned entities. EDA is not authorized to provide grants to individuals or other entity types that are not eligible under this NOFO, and such requests will not be considered for funding. If an organization is currently implementing an OIE award (i.e., under a prior-year Build to Scale or Regional Innovation Strategies program funding opportunity) and submitting an application to the same or successor challenge under this NOFO, EDA will not consider that application for award unless all activities under the existing award, including but not limited to final reporting requirements, are completed and submitted to EDA prior to October 1, 2023.

Entities that are eligible for funding include: • a State; • an Indian tribe; • a city or other political subdivision of a State; • an entity whose application is supported by a State or a political subdivision of a state and that is- o a nonprofit organization; o an institution of higher education; o a public-private partnership; o a science or research park; o a Federal laboratory; o a venture development organization; or o an economic development organization or similar entity that is focused primarily on improving science, technology, innovation, or entrepreneurship; or • a consortium of any of the aforementioned entities. EDA is not authorized to provide grants to individuals or other entity types that are not eligible under this NOFO, and such requests will not be considered for funding. If an organization is currently implementing an OIE award (i.e., under a prior-year Build to Scale or Regional Innovation Strategies program funding opportunity) and submitting an application to the same or successor challenge under this NOFO, EDA will not consider that application for award unless all activities under the existing award, including but not limited to final reporting requirements, are completed and submitted to EDA prior to October 1, 2023.

Venture Challenge Build applicants • should pilot a solution to a demonstrated need or implement a proven solution to a demonstrated need in a new region or community; • must demonstrate a commitment and ability to achieve, measure, and share data that support agreed upon impacts; and • must provide a 1:1 match. Venture Challenge Scale applicants • should scale an existing initiative that has demonstrated prior success based on empirical evidence; • must have a proven track record of successful deployment of programs; • must demonstrate a commitment and ability to achieve, measure, and share data that support agreed upon program effects to accelerate technology-based economic development strategies; and • must provide a 1:1 match. Venture Challenge Ignite applicants • may be establishing new partnerships across sectors, industries, and organizational types to build capacity; • may be conducting community needs audits and assessments to develop a comprehensive technology-based economic development strategy for the region; • may be establishing governance and other formal agreements and structures among partners and identifying regional TBED champions; • may be establishing a new or reimagined commercialization and technology transfer function; and • must provide a 1:1 match. Capital Challenge Form applicants • should identify, educate, and connect investors and other potential sources of equity-based capital (whether traditional, hybrid, or new structures) within a regional technology cluster; • should identify sources of potential investments (i.e., dealflow) and build capacity to conduct due diligence and close investment deals; • must demonstrate a commitment and ability to achieve, measure, and share data that support agreed upon effects; and • must provide a 1:1 match. Capital Challenge Deploy applicants • should raise and deploy equity or equity-based capital, whether through traditional or hybrid models, within a regional technology cluster via a fund or other collaborative investment framework; • should deploy investment capital into technology startups based on an investment thesis that clearly supports and fosters the growth of a regional technology cluster and its entrepreneurship ecosystem; • must not use B2S funding or matching share as investment capital but instead to operate or support one or more investment vehicles; • should assess companies for high-growth potential as a central factor of their investment strategy; • must demonstrate a commitment and ability to achieve, measure, and share data that support agreed-upon effects; and • must provide a 1:1 match.

Venture Challenge Build applicants • should pilot a solution to a demonstrated need or implement a proven solution to a demonstrated need in a new region or community; • must demonstrate a commitment and ability to achieve, measure, and share data that support agreed upon impacts; and • must provide a 1:1 match. Venture Challenge Scale applicants • should scale an existing initiative that has demonstrated prior success based on empirical evidence; • must have a proven track record of successful deployment of programs; • must demonstrate a commitment and ability to achieve, measure, and share data that support agreed upon program effects to accelerate technology-based economic development strategies; and • must provide a 1:1 match. Venture Challenge Ignite applicants • may be establishing new partnerships across sectors, industries, and organizational types to build capacity; • may be conducting community needs audits and assessments to develop a comprehensive technology-based economic development strategy for the region; • may be establishing governance and other formal agreements and structures among partners and identifying regional TBED champions; • may be establishing a new or reimagined commercialization and technology transfer function; and • must provide a 1:1 match. Capital Challenge Form applicants • should identify, educate, and connect investors and other potential sources of equity-based capital (whether traditional, hybrid, or new structures) within a regional technology cluster; • should identify sources of potential investments (i.e., dealflow) and build capacity to conduct due diligence and close investment deals; • must demonstrate a commitment and ability to achieve, measure, and share data that support agreed upon effects; and • must provide a 1:1 match. Capital Challenge Deploy applicants • should raise and deploy equity or equity-based capital, whether through traditional or hybrid models, within a regional technology cluster via a fund or other collaborative investment framework; • should deploy investment capital into technology startups based on an investment thesis that clearly supports and fosters the growth of a regional technology cluster and its entrepreneurship ecosystem; • must not use B2S funding or matching share as investment capital but instead to operate or support one or more investment vehicles; • should assess companies for high-growth potential as a central factor of their investment strategy; • must demonstrate a commitment and ability to achieve, measure, and share data that support agreed-upon effects; and • must provide a 1:1 match.

EDA may award grants to eligible applicants to support project activities. Periods of performance are dependent on the type of project and the scope of work of the grant award. EDA anticipates awards will typically have an initial period of performance of approximately three (3) years, with Venture Challenge Ignite having an expected period of performance of 18-24 months; all competitions under this NOFO have an anticipated start date of November 1, 2023 (subject to change).

Applications submitted under this NOFO are subject to the requirements of Executive Order (EO) 12372, "Intergovernmental Review of Federal Programs," if a State has adopted a process under EO 12372 to review and coordinate proposed federal financial assistance and direct federal development (commonly referred to as the "single point of contact review process"). All applicants whose primary service areas fall within one or more such States must give State and local governments a reasonable opportunity to review and comment on the proposed project, including review and comment from area-wide planning organizations in metropolitan areas. To find out more about a State's process under EO 12372, applicants may contact their State's Single Point of Contact (SPOC). Names and addresses of some States' SPOCs are provided by OMB and further information will be provided in the NOFO.

Throughout the review and selection process, EDA, at its sole discretion, may seek clarification, including but not limited to written clarifications and corrected or missing documents, from applicants whose applications are being reviewed and considered and require that applicants provide such clarifications or corrections to continue to be considered for an award under this NOFO. EDA will provide applicants a reasonable amount of time to provide any additional documentation. An applicant's failure to provide complete and accurate supporting documentation in a timely manner when requested by EDA may result in the removal of that application from consideration. Applications to all competitions under this NOFO will be reviewed against the following criteria. Criteria provided in the NOFO

EDA staff will conduct an eligibility and technical completeness review (the "Technical Review") of all applications received by the application deadline. Applications received from ineligible entities will not be considered for funding. Applications that do not contain all forms and required documentation listed in section of this NOFO may be deemed non-responsive and excluded from further consideration. EDA expects all applications to complete and include all required forms and documentation. However, EDA, in its sole discretion, may determine that an omission is curable and therefore may continue its consideration of the application despite the deficiency. Technical Review will be conducted separately for each application for each competition. Merit Reviewers will evaluate applications against the evaluation criteria. Each application will be reviewed by at least three Merit Reviewers. Merit Reviewers may include, but are not limited to, DOC and EDA personnel and other federal and non-federal subject matter experts. EDA, in its sole discretion, may use a statistical technique to normalize, aggregate, and group Merit Reviewers' quantitative evaluations (i.e., scores) and may consider qualitative Merit Reviewer evaluation information. For each competition, the most highly ranked applications will be recommended to the Grants Officer as the applications that merit consideration for EDA funding. The most highly ranked applications under this NOFO will be forwarded to the Selection Official.