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Technology, Innovation and Startups July 10, 2013

CIT accelerates the next generation of technology and technology companies Our objective is to be globally recognized as the innovator, builder and premier provider of services that accelerate technology company development Mission

Accelerate federal funding for small businesses Operate technology sourcing and management consulting practice Operate Office of Telework and Broadband Promotion Operate the GAP Fund Provide demand generation and infrastructure services Service Lines and 2013 Objectives Deliver technology solutions via R&D programs Maintain a statewide research and tech roadmap Administer the Commonwealth Research Commercialization Fund

RESEARCH PROOF OF CONCEPT OR INVENTION EARLY STAGE DEVELOPMENT PRODUCT DEVELOPMENT PRODUCTION Areas of Operation

CIT GAP Funds Overview Family of Seed-Stage Venture Funds Virginia Investment Focus Convertible Debt & Equity Fund Spin-Outs from Virginia Research Institutions “Double-Bottom Line” Fund Deep Engagement with Portfolio Companies

GAP Funds – Leverage Value (all) 13x

Track Record 81 New Companies Seeded 7 Spin-Outs from Universities and Federal Labs 13X Private : Public Funding Secured 8 Portfolio Companies Exited 4X Named “Top 100 Venture Fund” Value Creation for … Entrepreneurs Co-Investors Commonwealth of Virginia

R&D Service Line Deliver technology solutions to solve national and regional challenges Coastal ocean observing Remote sensing technologies for mine safety Vessel detection Maintain a statewide research and technology roadmap Established the Innovation & Entrepreneurship Measurement System Manage the Commonwealth Research Commercialization Fund

R&T Roadmap Identify key industry sectors for potential investment Identify basic and applied research opportunities with commercial promise in these sectors Encourage commercialization and economic development in these sectors Help ensure that investments in research are made prudently in focused areas with significant potential for commercialization and economic growth

Regional Priorities Include… Region 2000 Wireless RF Cognitive radio Nuclear plant life Healthcare Integrated comms Sensor / measurement Hampton Roads Modeling & simulation National defense Next Generation Shipbuilding Biofuels Aerospace Regenerative medicine Greater Richmond Cyber security Data management & analytics Smart grid and analytics Advanced Manufacturing Biotechnology Medical devices Roanoke - Blacksburg Power electronics Smart construction Bioinformatics Remote patient care Transportation Advanced Engineering Southern Piedmont Energy Efficient Coatings Micro propagation Advanced manufacturing Biopolymers Data Analytics Modeling & simulation Shenandoah Valley Energy storage Biomass conversion Drug research Bio-threat defense Food Processing Education Technology Virginia Piedmont Defense intelligence Specialty manufacturing Education technology Bioinformatics Sensors & robotics Data management & analytics Fredericksburg Secure telework Defense logistics Cyber security Information assurance Green tech Modeling & simulation Southwest Virginia Biomass Coal bed methane conversion Plug-less power Telemedicine Tobacco-cultured vaccine Data Management & analytics Northern Virginia Cyber security National defense Advanced Manufacturing Data analytics Bioinformatics Aerospace

Commonwealth Research Commercialization Fund (CRCF) Advanced Manufacturing Aerospace Communications Cyber Security Energy Environment Information Technology Life Sciences Modeling & Simulation (M&S) Nuclear Physics Transportation 2012 Program Profile 181 proposals were received, representing all ten tech council regions $35.5M in funding was requested 47 grants were awarded $5.8M funding was provided Funding was 100% matched by recipient Security for wireless devices – active defense mechanism 43 grants were awarded Portable device for bone imaging – battlefield and emergency trauma analysis $3M funding was provided Simulation software – 3D modeling for homeland security Funding was 100% matched by recipient 2013 Program Profile 100+ proposals submitted, with $7.4M requested Driving innovation and economic growth in Virginia through technology-based research and commercialization Roadmap: Key Industry Sectors Example CRCF Project Profile and Impact Focus areas included young companies; proof of concept work; cyber security, M&S, IT for K-16 ed, life sciences Novel compounds – new therapeutic strategy to halt or reverse diabetes

Innovation & Entrepreneurship in Virginia Entrepreneurs and startups account for 30% of new jobs in the Commonwealth Provide strategic vision for growing the I&E sector of Virginia’s economy Develop, track, analyze and report on key I&E metrics Recommend statewide initiatives designed to capitalize on industry and research strengths Assess national priorities and programs that offer opportunities to Virginians Support regional organizations and initiatives focused on I&E Current programs include: o Innovation & Entrepreneurship Measurement System (IEMS) o Virginia Performs Scorecard o “Virginia Blueprint” economic development strategic plan o STEM o Veterans Employment Initiative

Blueprint Virginia Economic Drivers:  Educational Excellence  Workforce Readiness  Robust Infrastructure  Supporting Advanced Manufacturing  Attractive Business Climate  Technology, Innovation and Startups  Small Business and Entrepreneurship  Quality, Cost-effective Healthcare  Energy Diversity & Security Goal - Build a statewide consensus among private and public sector leaders regarding investment priorities