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Proof of Concept

Increasing South Dakota Innovation

The Proof of Concept program provides up to $25,000 to conduct research that demonstrates the technical and economic feasibility of an innovation before it is commercialized. The program is open to those committed to commercializing an innovation in South Dakota, such as entrepreneurs, universities, existing South Dakota companies and other entities. Investment proceeds may be used to pay consultant contracts, material and supplies, salaries for employees in South Dakota, and necessary services for technical feasibility or marketing studies.

How it Works

  1. Submit completed program application to the GOED. The application packet is available online.
  2. GOED staff will review the application, determine eligibility, and contact the applicant if additional information is needed.
  3. The Research Affairs Council, which consists of representatives from the six public universities, will conduct a technical review of the proposal. Additionally, an advisory group of private equity investors and business incubator managers will conduct a business review.
  4. The technical and business reviews will be used by GOED to decide whether the application is approved.
  5. If approved, a contractual agreement will be sent to the applicant for approval and the proof of concept project will be conducted.
  6. Upon completion of the Proof of Concept study, a final report will be submitted summarizing the study and indicating if the project will continue toward commercialization. At that time, the investment may be forgiven or the repayment/investment terms will be instituted.

Eligible Recipients

Eligible applicants for Proof of Concept investments include: entrepreneurs, universities, existing South Dakota companies, and other entities committed to commercializing the results in South Dakota.

Use of Funds

Proof of Concept funding may be used to pay consultant contracts, material and supplies, salaries for employees in South Dakota, and necessary services for technical feasibility or marketing studies. Funds may not be used to pay the principal(s) or researcher(s) salaries, legal fees for incorporation and sales expenses, and general business operating expenses.

Terms

  • Applications can be submitted at any time.
  • The GOED will screen all applications for completeness and eligibility requirements and forward to reviewers within 10 days of submission.
  • A matching cash or in-kind investment of at least 10% of the project cost is required.

 

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