Validating New Ideas

Geography

NC IDEA MICRO grants are specifically targeted at companies headquartered in and that conduct a majority of corporate operations in the State of North Carolina. All publicly facing materials, including website, social media, and other marketing materials and channels should identify the business as a North Carolina company. Selected companies must agree to maintain the majority of corporate operations in the State of North Carolina for at least the 12-month period following completion of the grant.

Industry and Company Type

NC IDEA MICRO grants are awarded to companies bringing an innovative product or business model to the market. We prefer companies with proprietary intellectual property or other means of sustained competitive advantage that are solving large problems.

Companies with high capital requirements and a long runway to commercialization, such as pharmaceutical companies, are not eligible. Other companies that are considered out of scope and not eligible for grant funding include event venue and management companies; traditional staffing agencies; traditional publishing companies; consulting practices or agencies; training companies; tv/film production companies; distributors; franchises; resellers; local, service-oriented small businesses (i.e. restaurants, retail stores); trucking, hauling, and freight and other “lifestyle” companies; and not-for-profits. Also excluded are businesses that are illegal in NC, even if legal in other states or countries.

Market Opportunity

NC IDEA MICRO grants are awarded to companies bringing an innovative product or business model to market, and on a path to become a multi-million dollar company, have 50+ employees or be investable in 5-7 years.

Stage of Development

Companies are working to demonstrate proof of concept (existence of a problem, market readiness and an MVP) and are prepared to leverage a $10K grant to move to a quantifiable next step of validation.

Team

Applicants must have at least one founder living in NC, and it is preferred that all founders live in NC. Competitive applicants should have a founder who will be full-time within 6-12 months of applying for the grant. NC IDEA defines a full-time founder as one who works 40+ hours a week on their startup and does not spend more than 15 hours a week, either 1) working at another company; 2) working at a different startup run by the founder(s); or 3) on school-related activities (including class time and homework).

Revenue

Companies that have revenue in the last 12 months of more than $50K are less likely to be considered.

Prior Investment

Our funding is intended to help early stage companies accomplish specific milestones that demonstrate to investors and other funding sources that the company has high growth potential. Therefore, companies that have received greater than $50K in equity investment or over $1M in non-dilutive grant funding at the time of applying are less likely to be considered. We do however, consider founder and “friends and family” funding differently, and such funding will not negatively impact consideration.

Impact of Grant

The grant will enable the company to validate key assumption(s) and catalyze the development of the business.

• Each company works directly with NC IDEA staff to implement a six-month timeline of meaningful milestones and an impactful use of grant funds.
• The grant agreement is signed and the company receives 75% of their grant funds.
• Companies participate in an eight-week customer discovery and product launch program.
  • Customer discovery is focused on clearly identifying the early customers, their pain point, reaching them, and their solution.
  • Product launch will include fundraising strategies, marketing, and meeting with 15+ mentors who can provide advice and/or connections.
  • The program will require 3 hours per week of seminar participation, plus additional time to talk to potential customers.
• Companies schedule check-ins with NC IDEA staff or volunteer mentors, throughout programming.
• Two months after a company’s grant agreement is signed, the remaining 25% of the grant will be distributed to the company.
• Companies will make a final presentation to NC IDEA staff, mentors, and other companies in the cohort, about six months after the end of the customer discovery and product launch program.

One of the criteria that NC IDEA uses in evaluating grant applications is customer discovery. Our Customer Discovery Guide is a great resource for not only writing a better application, but giving your company a better chance at success.

• Opportunities to participate in monthly seminars and workshops on topics such as marketing, sales and meeting with fellow founders
• Access to NC IDEA staff to get feedback on pitches, funding opportunities, market pivots and other topics facing your startup
• Introductions to potential partners, mentors, advisors, funders and customers