Operating Plan — Center for Innovative Technology, Fiscal Year 2022 (Letter of June 17, 2021)
Summary
In this June 17, 2021 letter, Susan Aitcheson, CFO of the Center for Innovative Technology (CIT), sends Daniel Timberlake, Director of the Department of Planning and Budget, CIT's Operating Plan for FY2022. The letter says CIT is the operating arm and managing nonprofit of the Virginia Innovation Partnership Authority (VIPA), and that the plan fulfills Item 135.D.1 of the Virginia Acts of Assembly. The plan says VIPA was established in 2020. Its financial table (in thousands) shows a $75,179 beginning balance at 7/1/2021, total cash receipts of $18,245, total cash disbursements of $31,575, and an ending balance of $61,849 at 6/30/2022.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“Operating Plan — Center for Innovative Technology, Fiscal Year 2022 (Letter of June 17, 2021).”
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June 17, 2021
Mr. Daniel Timberlake
Director
Department of Planning and Budget
1111 East Broad Street, Room 5040
Richmond, Virginia 23219
Dear Mr. Timberlake:
Enclosed please find the Operating Plan for FY2022 for the Center for Innovative Technology (CIT). CIT is the
operating arm and managing nonprofit of the Virginia Innovation Partnership Authority (VIPA). The attached
report fulfills the requirements of Item 135.D.1 of the Virginia Acts of Assembly, 2021 Reconvened Special
Session I.
Please feel free to call me at 703‐689‐3021 if you have any questions.
Sincerely,
Susan Aitcheson
CFO
Center for Innovative Technology
cc: The Honorable Brian Ball, Secretary of Commerce and Trade
Ms. Cassidy Rasnick, Deputy Secretary of Commerce and Trade
The Honorable Janet D Howell, Chairman, Senate Finance & Appropriations Committee
The Honorable Luke E. Torian, Chairman, House Appropriations Committee
Ms. Anne E Oman, Staff Director, House Appropriations Committee
Ms. April Kees, Staff Director, Senate Finance & Appropriations Committee
Ms. Toni Walker, Associate Director, Department of Planning and Budget
Ms. Samantha Martin, Budget and Policy Analyst, Department of Planning and Budget
2214 Rock Hill Road
Suite 600
Herndon, VA 20170
Tel.703‐689‐3000
www.cit.org
Item 135.D.1
Operating Plan
and
Item 135.D.1a
All planned and actual
revenue and expenditures
along with funding sources
Operating Plan
Fiscal Year
2022
Table of Contents
Section I: VIPA
Mission & Principles… 1
About VIPA… 3
Leadership… 5
FY22 Overview… 7
Section II: CIT
Operating Plan FY22:
Division of Entrepreneurial Ecosystems… 11
Click to Skip to Chapter
Division of Commercialization… 13
Division of Investment… 16
Division of Strategic Initiatives… 19
Executive Office… 22
Appendices:
Appendix A… 29
Appendix B… 30
1
The Virginia Innovation Partnership Authority (VIPA), with the Center for Innovative
Technology (CIT) as its operating arm and managing nonprofit, was established in 2020 to support
the life cycle of innovation, resulting in the creation of new jobs and company formation. VIPA
supports the full innovation life cycle from translational research to entrepreneurship, and pre-seed
and seed-stage funding as well as acceleration, growth, and commercialization. The Authority
provides a collaborative, consistent, and consolidated approach that will assist the Commonwealth
in identifying its entrepreneurial strengths, including the identification of talents and resources that
make the Commonwealth a unique place to grow and attract technology-based businesses.
VIPA is Guided by Four Governing Principles:
INCLUSION ACCOUNTABILITY
Prioritize outreach to historically Openness on all issues among the
underrepresented groups in the Board, the Administration, the General
Commonwealth such as people of Assembly; enhanced Board Committees
color, women, and rural communities for oversight across all VIPA activities.
while ensuring that all parts of the
Commonwealth are touched by CIT.
TRANSPARENCY LEADERSHIP
Board approved operating plans & balanced Board and management policy
scorecards; management accountability; engagement with COV government,
Board and Commonwealth reporting. operational execution, and measurable
results.
The Virginia Innovation Partnership Authority
(VIPA), through its governance and with CIT
as its operating arm and managing nonprofit,
brings together components of existing and
new program activities in an approach through
which the whole is greater than the sum of the
individual programs. VIPA’s design includes
governance and management capabilities to
ensure that programs generate transformative
and measurable results.
The Center for Innovative Technology (CIT), a
nonprofit company established in 1985, creates
technology-based economic development
strategies to accelerate innovation, imagination,
and the next generation of technologies and
technology companies. CIT bridges critical gaps
at the earliest stages of the innovation continuum
through commercialization and seed funding.
*CIT is currently in the rebranding process and
will announce the new entity name upon board
approval.
3
ABOUT VIPA
The Virginia Innovation Partnership Authority (VIPA) was launched on July 1, 2020. The VIPA
legislation approved during the 2020 Session of the General Assembly included Governor Northam
making six appointments to the new VIPA Board. His seventh included statutorily appointing the
Secretary of Commerce & Trade as VIPA Vice Chairman. The remaining four appointments were
made by the Legislature’s Joint Rules Committee in May 2021.
To ensure a smooth transition and sustained program operation, CIT’s existing Board remained in
place until future governance could be established. In preparation for the first VIPA Board meeting,
CIT’s Board met for the final time on December 3, 2020 to approve changes in CIT’s bylaws and
articles of incorporation that would allow the newly formed VIPA Board to also serve as the Board
for CIT.
At the first VIPA Board Meeting (December 17, 2020), several critical actions were taken by the
Board to ensure that CIT is authorized to provide administrative and operational support to VIPA
and ensure uninterrupted services from programs that require VIPA oversight. These actions were
unanimously approved through a governance resolution and separate motions that included:
• Designating CIT as the managing nonprofit and operating arm of VIPA.
• Appointing the President of CIT to serve as the President of VIPA and carry out the
duties outlined in the resolution.
• Designating the Board of Directors for VIPA to also serve as the Board of Directors for CIT.
• Approving Advisory Boards for the Investment, Commercialization, and Entrepreneurial
Ecosystems Divisions at CIT.
• Approving Guidelines for the first solicitation of the Commonwealth Commercialization Fund
(CCF) to be announced in January 2021.
• Delaying the first report on VIPA Centers of Excellence until December 1, 2021.
• Delaying the election of VIPA officers until the full Board has been appointed.
VIPA held its second Board meeting on March 4, 2021, however, the four Joint Rules Committee
appointments had not yet been announced. The Board received an update on CIT’s FY21 goals
and objectives in addition to strategies and implementation timelines for the FY22 operating plan
development for approval in the Board’s June 2021 meeting. Additionally, VIPA’s Board approved
the criteria for the Regional Innovation Fund. The Board also heard presentations from VIPA’s four
centers of excellence (CCAM, CCALS, CCI, VBHRC).
Significantly, the first solicitation of the new Commonwealth Commercialization Fund was launched
in January 2021, and the first solicitation of the new Regional Innovation Fund was launched in
March 2021. Both programs are on schedule to make awards before the end of FY21.
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INDEPENDENT NONPROFIT CENTERS OF EXCELLENCE
In the 2020 legislation that created VIPA, four existing Commonwealth-funded nonprofit Centers
of Excellence, in addition to CIT itself, were brought under the VIPA umbrella. This new structure
allows for greater coordination across these organizations, as well as unified periodic reporting
through CIT to the Secretary of Commerce and Trade and other Commonwealth of Virginia
stakeholders. Click Logos Below to Learn More
Commonwealth Center for Virginia Catalyst Center for Innovative Technology Commonwealth Center for Commonwealth Cyber Initiative
Advanced Logistics Systems 501(c)(3) VIPA Operating Arm and Advanced Manufacturing Multi-University Program
501(c)(3) Managing Nonprofit 501(c)(3)
501(c)(3)
Board of Directors Board of Directors Board of Directors Board of Directors •Advisory Board
(10 Members) (16 Members) (11 Members) (12 Members) •Leadership Council
Chair: Pam Norris Chair: David X. Cifu Chair: To Be Appointed Chair: Greg Benson Exec. Dir.: Luiz da Silva
Vice Chair: Vince Barnett CEO: Michael Grisham CEO & President: Bob Stolle CEO: John Milton-Benoit
President: Mark Manasco
Commonwealth Center for Non-stock corporation research Center for Innovative Technology Commonwealth Center for Commonwealth Cyber Initiative
Advanced Logistics Systems consortium comprised of the is the managing nonprofit Advanced Manufacturing funds Hub and Node sites
administers and deploys University of Virginia, Virginia executing the mission of VIPA. administers private sector to provide resources for the
seed money for collaborative Commonwealth University, incentive and university research establishment of research faculty/
public sector projects with Virginia Tech, George Mason grants. recruiting, entrepreneurship
Commonwealth partners. University and the Eastern Virginia programs, student internships and
Medical School that contracts to educational programming, and
perform research and develop operations.
infrastructure tools in biosciences
to facilitate research activities.
LEADERSHIP
In accordance with the Virginia Innovative Partnership Authority (VIPA) Governance Guidelines,
VIPA shall be governed by a board of directors consisting of 11 members as follows: the Secretary
of Commerce and Trade, or his designee; and six non-legislative citizen members appointed by the
Governor; three non-legislative citizen members and one director of technology transfer office from
a major research public institution of higher education as appointed by the Joint Rules Committee.
For more information, click here:
Virginia
5 Innovation Report and General Assembly Recommendations:
VIPA Governance 2.2-2353 Board Composition
VIPA BOARD OF DIRECTORS
Vice Chair Monique Adams Barbara Boyan
The Honorable Brian Ball Executive Director Dean, College of Engineering
Commonwealth Secretary 757 Angels Virginia Commonwealth
of Commerce and Trade University
Richard Hall Chiedo John Kurt John Andrew Ko
Managing Director Sr Engineering Manager, Chief Cybersecurity Officer Founder
Orion Capital GitHub Siemens USA Kovexa
Founder, Generate Impact
Christopher Long Rob Quartel Angela D. Reddix, Ph.D Paula Sorrell
President & CEO Executive Chairman of the President & CEO Associate Vice President,
Washington Resources Board ARDX Innovation & Economic
Associates NTELX Development, George
Mason University
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FISCAL YEAR 2021 OVERVIEW
FY21 was a transformative year for innovation and entrepreneurship in Virginia. In addition to
consolidating related organizations under the VIPA umbrella, the Commonwealth made significant
new investments in key programs designed to:
• Improve the pathway for research commercialization by building university capacity.
• Focus on strategic domain areas for research commercialization and acceleration
services, including cybersecurity, data analytics, unmanned systems, space and
satellite systems, personalized medicine, life sciences, and other opportunities that
present themselves in the future.
• Develop a backbone of statewide resources that each region can tap into to ensure
there is capacity across the state to form quality start-ups positioned for growth.
• Define and prioritize strategic domain areas of research and research
commercialization.
• Generate measurable economic development benefits, such as taxable events at
corporate and employee levels.
• Fostering a robust innovation ecosystem in regions across Virginia.
• Investing in and creating a critical mass of innovation-led companies serving
commercial markets.
Our commitment for FY22 is to maintain Virginia’s role as a top-tier center for innovation.
The latest WalletHub rankings list Virginia as #5 for innovation. Much of that derives from Virginia’s
#3 ranking for Human Capital and #9 ranking for innovation environment. VIPA and CIT are
committed to building that environment.
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FISCAL YEAR 2022 INNOVATION STRATEGIES
• Establish the ONE Virginia Plan as CIT’s compass for Diversity, Equity, and Inclusion.
• Expand support and services for regional ecosystems and initiatives in every region
of Virginia.
• Support the recruitment and retention of eminent researchers at Virginia’s research
universities.
• Increase commercialization in Virginia’s private sector and at higher ed institutions.
• Support the development of technology commercialization programs at HBCUs and
underrepresented populations.
• Launch the Virginia Founders Fund (VFF) II and Virginia Partners Fund to increase pipeline
from and investments in founders arising from the Commonwealth’s traditionally
underserved communities.
• 3-Stage Pipeline Investment Program to foster additional private investment in Virginia’s
high growth companies and enhance returns for sustainable investment in Virginia’s
technology ecosystems.
• Develop indirect investment programs such as co-investment, sidecars, and intermediate
strategies to provide a competitive advantage to the Commonwealth in start-up investing.
• Expand market development activities through additional pilot projects in strategic
industry areas.
• Execute a marketing and branding campaign designed to showcase innovation and
in the Commonwealth.
Commonwealth legislation designates CIT as CIT’s Executive Office functions for VIPA and
the managing nonprofit for VIPA. The goals and CIT Divisions include:
objectives of VIPA are accomplished by the four
divisions of CIT: • Finance and Administration
• Human Resources
• Division of Commercialization
• Policy, Communications,
• Division of Investment
and Marketing
• Division of Entrepreneurial Ecosystems
• Systems
• Division of Strategic Initiatives
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9
VIPA Operating Arm & Managing Nonprofit
*CIT is currently in the rebranding process and
will announce the new entity name upon board approval.
EXECUTIVE OVERVIEW FY22 OBJECTIVES
CIT serves as the managing nonprofit and operating arm of the VIPA. In its management
function, CIT is committed to:
• Providing governance and management capabilities to ensure that programs
funded through VIPA generate transformative and measurable results.
• Collaborating with stakeholders and the administration to develop innovation
policy and initiatives.
• Providing clarity and alignment among centers under VIPA.
• Ensuring accountability for performance.
• Embedding diversity, equity, and inclusion in the organization and its programs.
• Engaging every region in programmatic activity.
• Implementing a robust brand and communications strategy, including statewide
and regional marketing alignment.
Operationally, CIT provides a continuum of programs and services for innovation
led development that will collectively scale to drive economic diversification, growth,
and measurable benefits. These programs and services are delivered through four
operational divisions: Entrepreneurial Ecosystems, Commercialization, Investment, and
Strategic Initiatives.
The divisions are highly collaborative and include support for entrepreneurs and regional
ecosystems that range from lean start-up training through commercialization grants and
seed-stage investment.
10
VIPA Operating Arm & Managing Nonprofit
INVESTING IN VIRGINIA
Click Division to Skip to Section
Division of Division of
Entrepreneurial Commercialization
Ecosystems
Division of Division of
Investment Strategic Initiatives
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DIVISION of
ENTREPRENEURIAL
ECOSYSTEMS
FISCAL YEAR 2022 OBJECTIVES
The Division of Entrepreneurial Ecosystems was established in
July 2020 to support and promote technology-focused entrepreneurial
ecosystems throughout the Commonwealth. Regional entrepreneurial
ecosystems in Virginia have grown significantly over the last several
years as communities recognize the significance of this important
sector of the economy. Regionally based initiatives and entrepreneurial
support organizations (ESOs) have been established to meet the needs
of Virginia’s diverse regional economies. Funding for these programs
includes federal and state grants, and support from localities and the
private sector.
The Division acts as a supporter, connector, and convener for
entrepreneurial ecosystems and stakeholders throughout Virginia. These
stakeholders include start-up incubators and accelerators, training
providers, technology councils, chambers of commerce, investor groups,
and other Virginia-based organizations that assist entrepreneurs through
the early stages of business formation and growth.
Regional Innovation Fund (RIF) Click Here to Learn More
The RIF is a CIT-administered state-funded program that provides
competitive grants to leading Virginia-based entrepreneurial support
organizations (ESOs). RIF grants provide sustaining co-funding for
successful ESOs. RIF grants can be renewed on an annual basis if RIF
grant recipients continue to achieve projected entrepreneurial outcomes
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and metrics. The Division of Entrepreneurial Ecosystems launched the RIF in March 2021 and
expects to make awards before the end of FY21.
Primary objectives for The Division of Entrepreneurial Ecosystems in FY22 include:
• Support state and regional entrepreneurial support organizations (ESOs) in all regions of
the Commonwealth, including organizing and hosting investor demo days and an
entrepreneurial ecosystem stakeholder conference.
• Through the RIF, provide $1.6M of sustaining funding to regional entrepreneurial ecosystem
coordinating entities.
• Launch enhanced statewide entrepreneurship information portal.
• Expand Federal Funding Assistance Program (FFAP) to support 300+ clients.
Click Here to Learn More
DIVISION of
ENTREPRENEURIAL ECOSYSTEMS DIVISION
ENTREPRENEURIAL ECOSYSTEMS
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DIVISION of
COMMERCIALIZATION
FISCAL YEAR 2022 OBJECTIVES
The Division of Commercialization supports and advances technology
commercialization throughout Virginia, with particular engagement
with higher education and the private sector. It has a crucial role in
promoting research and development (R&D) excellence in Virginia and
in guiding, coordinating, and funding efforts to support research with
commercial potential. In doing so, the Division leads three initiatives:
the Commonwealth Commercialization Fund (CCF), advancing founder-
friendly policies, and identifying allowable, specific uses of buildings
owned by public higher education institutions. The Division supports
two activities led by Strategic Initiatives: Commonwealth centers of
excellence and the Virginia Innovation Index.
Commonwealth Commercialization Fund (CCF)
The CCF drives economic growth by funding innovative technology
research, development, and commercialization in Virginia, with particular
emphasis on higher education and the private sector. Established in the
2020 General Assembly Session, CCF builds upon two programs that
transitioned to CCF: the Commonwealth Research Commercialization
Fund (CRCF) and the Virginia Research Investment Fund (VRIF).
Through grants and loans to Virginia organizations for technology
development and commercialization, hiring of eminent researchers,
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acquisition of equipment, and other activities, CCF fosters economic growth and job creation and
further the goals of the Virginia Innovation Index.
In FY21, the Commercialization Division launched the first CCF solicitation. Managing such a grant
and loan program includes issuing funding opportunities, supporting award recipients
and expanding partnerships with technology councils, accelerators, higher education, and other
members of the entrepreneurial ecosystem. Click Here to Learn More
Primary objectives for the Commercialization Division in FY22 include:
• Launch higher education program(s) in early FY22.
• Support portfolio of CCF, CRCF, and VRIF award recipients.
• Prepare and submit FY21 CCF annual report and provide other reports as required,
including the VIPA report for Legislative Audit and Review Commission (JLARC)’s annual
economic development incentive review.
• Support research with commercial potential in collaboration with the Division of
Entrepreneurship Ecosystems and other CIT Divisions to expand its engagement with
higher education, including Historically Black Colleges and Universities (HBCUs).
• Further shared goals of R&D excellence and commercializing university-based
intellectual property.
• Work with the Advisory Committee on Commercialization established in FY21.
• Advance founder-friendly policies to facilitate the identification, licensing, and
commercialization of university intellectual property.
• Coordinate with technology transfer offices and senior research officers of higher
ed institutions to advance and support such policies and practices.
• Drive technology research and commercialization by facilitating, as appropriate, the use of
buildings and research resources owned by public institutions of higher education.
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DIVISION of
COMMERCIALIZATION
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DIVISION of
INVESTMENT
FISCAL YEAR 2022 OBJECTIVES
The Division of Investment was established to support CIT GAP Funds
and any new investment vehicles approved by the VIPA and CIT Boards.
The purpose of this Division is to give Virginia a competitive advantage
with an array of funding mechanisms provided under section § 2.2-2355
related to direct and indirect investments. As the availability of early-
stage capital is critical for many emerging technology companies, CIT
makes direct investments through CIT GAP Funds, a family of funds
spanning multiple generations of tech, life science, and clean energy
theses.
Launched in 2018, the Virginia Founders Fund joined these sector-
oriented funds, placing investments in Virginia communities traditionally
underserved by risk capital. CIT management oversees CIT GAP Funds
and is advised in investment decisions by the GAP Funds Investment
Advisory Board (IAB). Click Here to Learn More
Going forward, the IAB forms the nucleus of a broader division Advisory
Committee on Investment. This Committee adds representatives from
regional and national angel and venture capital communities to advise
management and the VIPA Board on new investment programs and
policies.
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Primary objectives for the Investment Division in FY22 include:
• Continued development of CIT GAP Funds three-stage model to support companies through
their seed-stage progression:
• Seed-Stage I Pre-GAP Funds
• Seed-Stage II CIT GAP Funds
• Seed-Stage III CIT GAP Funds Spin-Out Fund
• Seed-Stage I enhancements will provide for an increased number of pre-GAP, seed-stage
investments across the Commonwealth. Seed-Stage II will continue to focus on CIT GAP
Funds’ flagship tech, life science, and clean energy funds. Seed-Stage III will provide
later stage seed capital in further support of the Seed-Stage II portfolio.
• Launch Virginia Founder’s Fund II, a Seed-Stage I initiative, investing in women- and
minority-owned start-ups and partnering with investor networks, accelerators, and incubators
that share this objective.
• Launch Virginia Partners Fund, a Seed-Stage I initiative investing in Virginia’s traditionally
underserved geographies and partnering with accelerators and tech transfer programs to
develop new tech start-ups.
• Explore launch of Opportunity Fund, a Seed-Stage III initiative, investing pooled private
capital under management of the CIT GAP Funds Investment Team and aligned with the
Team’s strategic sector track record, into selected Seed-Stage II portfolio companies and
other late seed-stage Virginia start-ups aligned with CIT’s investment mission.
• Initiate indirect investment in Virginia’s entrepreneurial ecosystems through transfer of
$2M of CIT GAP Funds returns to CIT’s Entrepreneurial Ecosystems Division for
reinvestment in intermediary projects supporting entrepreneurship around the
Commonwealth.
• Design and implement other indirect investment programs. These may encompass creation
of sidecar funds, additional intermediary investment, or co-investment vehicles aligned with
CIT’s investment mission.
• Support Virginia proposal for Department of Treasury’s State Small Business Credit
Initiative (SSBCI) funds. Examine deployment of acquired funds through accelerator sidecar
fund, angel co-investment vehicle, and fund investments targeting Virginia’s traditionally
underserved communities.
• Benchmark Virginia tax incentive programs supportive of start-up company tech
development against peer state offerings.
• Work with the Advisory Committee on Investment to advise and assist the Investment
Division and VIPA Board on making biennial recommendations to the Governor regarding
investment strategy.
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DIVISION of
INVESTMENT
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DIVISION of
STRATEGIC INITIATIVES
FISCAL YEAR 2022 OBJECTIVES
The Division of Strategic Initiatives will “provide leadership for
strategic initiatives that explore and shape programs designed to
attract and grow innovation in the Commonwealth” (§ 2.2-2355). FY22
will continue the division’s efforts on the execution of three primary
activities: Smart Communities, Unmanned Systems, and the DHS SCITI
Labs program. In addition to these primary activities, Strategic Initiatives
will deliver the Virginia Innovation Index and continue its exploration of
the following potential new areas:
• A Maritime Center of Excellence centered around
Hampton Roads.
• A Public Safety Innovation Center being developed in
conjunction with the Public Safety and Homeland Security
Secretariat of Virginia.
• Augmented Reality/Virtual Reality (AR/VR).
• Quantum computing, focused specifically on the development
of quantum computing-based software solutions for areas such
as Advanced Logistics.
• Other potential initiatives and external funding opportunities
under § 2.2-2355 will be pursued during FY22 as
opportunities provide possible mission support and available
staff time allows.
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Primary objectives for the Strategic Initiatives Division in FY22 include:
Smart Communities Click Here to Learn More
Key priorities in support of this strategic vision include:
• Activities will continue to focus on pilot projects across Commonwealth, with the intent
being “Community-Driven Innovation.”
• Continued support of early stages of initiatives that develop capabilities identified
and desired by the communities involved, including pilot projects with a diverse
set of communities.
• Project selection will seek to achieve geographic diversity across Commonwealth, in
addition to technology and vendor diversity, with a preference for smaller, innovative
Virginia companies.
• Initial areas of focus include: IoT security and privacy, indoor public building and
environmental sensors, and continued integration of various pilot activities with the
Commonwealth Data Trust model. Click Here to Learn More
The Virginia Unmanned Systems Center at CIT Click Here to Learn More
The nexus of Virginia’s activity in UxS – Land, Air, Sea, Space.
Key priorities in support of this strategic vision include:
• Maintain collaboration between businesses, investors, universities, entrepreneurs, and
government organizations.
• Continue to support rapid growth of the UxS industries in Virginia.
• Create new pilot projects with Virginia state agencies and private companies to
demonstrate value proposition of UxS technology.
• Develop partnerships for Virginia companies with major service providers (package
delivery, public safety, and infrastructure).
SCITI Labs Click Here to Learn More
The SCITI Labs Commercial First Innovation program will continue with the U.S. Department
of Homeland Security (DHS) in FY22. In May 2021, DHS issued a contract modification to add
funding to our current multi-year contract. Management set a conservative realized revenue
target of $2M for SCITI Labs in FY22. The primary focus of this program will be continued strong
execution against the defined Program Plan and customer technology interests.
Key priorities in support of this strategic vision include:
• Detection of wildfire ignition using ground-based IoT sensors.
• Smart buildings and communities.
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• UAV and other Public Safety-related technologies.
• Infrastructure protection against a range of threats, including cybersecurity, chemical
release threats, and other traditional threats.
Budget and Resources
Appropriated Strategic Initiatives budget for FY21/22 biennium budget is $1M per year for each
of the two years and for each of the two areas – Smart Communities and Unmanned Systems.
Management expects the federal government to authorize additional funding to its existing DHS
SCITI Labs Commercial First contract during the current federal FY ending September 30, 2021.
Management projects the need to add one to two new hires for adequate program support. The
remaining funds will provide direct program support, including pilot project initiatives under Smart
Communities and Unmanned Systems and subcontracts under the SCITI Labs program.
DIVISION of
STRATEGIC INITIATIVES
22
EXECUTIVE
OFFICE
FINANCE AND ADMINISTRATION
In FY22, VIPA continues the consolidation of oversight at the Authority
level for multiple state-funded organizations. Those organizations
include the Center for Innovative Technology (CIT), the Virginia
Catalyst (also known as the Virginia Biosciences Health Research
Corporation (VBHRC), the Commonwealth Center for Advanced
Manufacturing (CCAM), the Commonwealth Cyber Initiative (CCI), and
the Commonwealth Center for Advanced Logistics Systems (CCALS).
The Chief Financial Officer of CIT, the operating arm and managing
nonprofit for VIPA, will 1) manage the financial responsibilities of the CIT
organization and programs funded in CIT and 2) support VIPA Board of
Directors in its financial oversight of the other state-funded organizations
under VIPA umbrella. CIT is advised by the Administration and outside
legal counsel on the legal relationship between VIPA, CIT, and the
other organizations to help clarify governance roles and accounting
requirements.
Primary objectives for the CIT Finance and Administration Group in
the upcoming fiscal year include:
• Maintain the stability of the organization through sound
financial management.
• Conduct all financial, legal, and administrative functions of the
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corporation, including the design and operation of a federal and state compliant financial
management system.
• Independently evaluate the quantitative and qualitative return on investment of the
programs in CIT.
• Ensure that programs operate within the agreed upon financial envelope.
SYSTEMS
Under the auspices of the CIO, the FY22 Systems plan will continue to evolve to support a fully
distributed and multi-facility workforce while maintaining a sound security posture.
Primary objectives for Systems in the upcoming fiscal year include:
• Maintain security while complying with NIST 800.53 Security and Privacy Controls.
• Address and mitigate any identified issues.
• Work with VITA regarding specific security controls required by the Commonwealth.
• Implement CIT specific controls, using the NIST 800.53 risk management guidelines.
HUMAN RESOURCES
In FY22, Human Resources (HR) will continue to navigate transformational challenges. HR will take
a leadership role and engage in an aggressive strategy to provide services in support of VIPA’s and
CIT’s vision and mission.
Primary objectives for Human Resources in the upcoming fiscal year include:
• HR will work with management to value and align human capital with company initiatives,
values, strategies, and the needs of all stakeholders.
• Maintain CIT as a great place to work for employees with a passion for creating economic
opportunities for others.
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• Align with the ONE Virginia Plan as CIT’s compass for Diversity, Equity, and Inclusion.
• Recruit, hire, motivate, and retain high performing, diversified talent in a workforce that is
highly geographically distributed.
• Retain our current valued employees who are critical to our reputation and success.
• Ensure a high performance workforce via annual reviews that effectively link performance
with organizational goals.
• Maintain the skills and leadership necessary to successfully carry out CIT’s mission and
vision through workforce design, staffing plans, and succession planning that consider
current skills gap, an aging workforce, and future staffing expectations.
• Increase engagement that fosters employee commitment in a rapidly changing
environment. HR will continue to read the pulse of the organization to engage employees,
boost morale, fulfill expectations, and inspire commitment.
• Support the transformation of total compensation programs through analysis and
benchmarking.
HUMAN RESOURCES
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COMMUNICATIONS AND MARKETING
ENGAGEMENT FY22 OVERVIEW
The Virginia Innovative Partnership Authority (VIPA) & the Center for Innovative Technology (CIT
pending brand revision by September 2021) will work to be recognized for adopting innovative,
inclusive, and proactive approaches to communications that effectively reach and engage with
stakeholders throughout the Commonwealth.
Primary objectives for Communications & Marketing in the upcoming fiscal year include:
Message Development:
• The messaging will be clear, authentic, persuasive, and consistent in its effort to build
relationships and foster engagement with entrepreneurial funding and networking
opportunities; strategic initiatives, innovation, and research; commercialization and
investment in emerging and impactful technologies.
Transitional Cross-Branding/ Rebranding and Value Retention:
• The rebranding of CIT will effectively cross-brand with VIPA and retain access via search,
etc to its nearly 4 decades of financial accountability, reputation, and service to the
Commonwealth.
Ensure Consistent Messaging:
• Work with division and initiative leaders to ensure that messaging is impactful, relevant
and effective for engaging their specific audience/ stakeholders in a variety of modalities,
including presentations, media outreach, social networks, and in-person/ virtual events.
Prioritize Relationships, Partnerships & Connection to the Commonwealth:
• Develop and maintain partnerships that extend frictionless access to information and
support. This endeavor includes updating Commonwealth Agencies, Partner Groups,
Stakeholder Networks, and Regional Leadership regarding innovation advancements,
opportunities, and resources.
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VIPA Operating Arm & Managing Nonprofit
COMMUNICATIONS and
MARKETING ENGAGEMENT
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OPERATING PLAN RISK AND MITIGATION
Risk may arise during a corporate transformation. Below are the major areas of risk in this
operating plan and mitigation to those risks.
Key Personnel
Key personnel may depart during organizational and programmatic evolution. Recruiting
talented, high-caliber people able to hit the ground running is critical to meeting and
exceeding organizational goals and objectives.
• Mitigation: Management has undertaken a consistent communications program with
staff and prepared succession plans for key personnel.
Return to Office Space
CIT has a distributed workforce but, primarily, uses two facilities – Gather in Richmond and
CIT in Herndon. Remote work has caused no disruption to productivity but returning to the
office will create challenges for some staff members.
• Mitigation: Follow guidance that will be promulgated by the Governor. Develop a new
office use strategy and provide flexibility for staff.
Brand Market Strategy
The challenges for rebranding include financial, legal, and logistical methods of
communication. The Expense of rebranding will be both financial and relational.
• Mitigation: The impact of rebranding will require an effective marketing strategy that
communicates with stakeholders, contractors, and facilities regarding brand change
to avoid confusion and interruption of operations. Funding has been added to the
FY22 budget for rebranding and marketing.
Board Governance
The delay in finalizing Board appointments has also delayed the election of VIPA Board
officers and committees that provide oversight and governance.
• Mitigation: Establish a nominating committee that provides the Board with a slate
of candidates for Chairman, Secretary, and Treasurer to be elected at the September
2021 Board meeting. Create committees to include Executive and Finance.
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Appendices
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Appendix A:
• VIPA FY22 Budget Summary
Appendix B:
VIPA Operating Arm & Managing Nonprofit • CIT FY22 Budget Summary
• CIT FY22 Budget Summary cont.
APPENDIX A
APPENDIX B
VIPA Operating Arm & Managing Nonprofit
*CIT is currently in the rebranding process and
will announce the new entity name upon board approval.
APPENDIX B cont.
VIPA Operating Arm & Managing Nonprofit
Item 135.D.1b
By program, total grants
made and investments
awarded for each grant and
investment program,
including CRCF
and
Item 135.D.1e
Private investment activity
related to the fund of funds
Item 135.D.1b and D.1.e
As illustrated in the FY2022 Operating Plan of the Center for Innovative Technology (CIT), the managing non‐profit, the following excerpt has been modified to include total budgeted
grants and investments planned for each grant and investment program administered by CIT at a total budgeted amount of $16.501M.
Objectives Success Metric FY22 Measure Budget Grant/
Investment Amount
Virginia Founders Fund II (VFF II) – Launch Virginia Founders Fund II, focusing on Number of investments 4‐8 VFF investments placed $0.450M
demographically diverse founders including minority founders of color and women.
Virginia Partners Fund (VPF) – Launch VPF by investing in geographically diverse Number of investments 10‐12 VFP investments placed $0.675M
companies in partnership with Virginia accelerators and tech transfer offices.
GAP Fund – Identify, process and close a robust pipeline of seed stage investments and Number of investments 10‐15 GAP investments placed, $3.375M
maintain portfolio performance to recover all invested capital over the life of the including Innovation Investments
investment program.
Leverage Cash: amount of initial At least $20M
and follow on investment from
non‐Commonwealth sources
Rate of Return 1 x ROR
Opportunity Fund Launch – Explore potential implementation models for spin‐out Deploy initial investment capital Completed by 6/30/2022 $2.000M
Opportunity Fund and potential participation by CIT through fund‐of‐funds investment
strategy with a defined implementation model and plan drafted by December 1, 2021.
Commonwealth Commercialization Fund (CCF) drives economic growth by funding Issue two rounds: higher ed and Awarded by 6/30/2022 $8.401M
innovative technology research, development and commercialization in Virginia, with private sector
particular emphasis on eminent researchers, research infrastructure, and increased
commercialization in higher education, the private sector, and research institutes.
Entrepreneurial Ecosystems – Administer the Regional Innovation Fund (RIF) as the vehicle Deploy $1.6M in grant funding Deploy by 6/30/2022 $1.600M
through which sustaining state funding will be provided to regional entrepreneurial
ecosystem coordinating entities.
Total $16.501M
Item 135.D.1c
By program, recoveries of
previous grants or
investments and sales of
equity positions
Recoveries of previous grants, investments and sales of
equity positions are unpredictable and, therefore, not
budgeted.
Item 135.D.1d
Cash balances by funding
source and available,
committed and projected
expenditures of cash balances
Virginia Innovation Partnership Authority
Fiscal Year 2022 Cash Budget
(in thousands)
Revenue
Commonwealth Appropriation ‐ General Fund $ 41,550
Interest and Miscellaneous Revenue $ 4
Total Revenue $ 41,554
Expenses and Transfers
VIPA Administrative Expenses $ 3
Transfer to CIT ‐ FY2022 Appropriation $ 16,100
Transfer to COEs ‐ FY2022 Appropriation $ 25,450
Total Expenses and Transfers $ 41,553
Consolidated Revenue, Expenses, Transfers, and Changes in Net Position
Total Revenue $ 41,554
Total Expenses and Transfers $ 41,553
Change in Net Position $ 1
Beginning Net Position at 7/1/2021 $ 2,028
Ending Net Position at 6/30/2022 $ 2,029
Center for Innovative Technology
Fiscal Year 2022 Cash Budget
Operating Funds Designated Funds
COV Other COV
Entrepreneurial Strategic Unmanned
Discretionary Grants & Commercialization Investments Ecosystems Initiatives Systems 135.P.4
Fund Contracts Division Division Division Fund Fund Fund Total
(In Thousands)
Beginning Balance at 7/1/2021 $ 646 $ 632 $ 31,837 $ 16,564 $ 3,059 $ 532 $ 1,231 $ 20,678 $ 75,179
Cash Receipts
General Fund Appropriation $ 3,946 $ 5,000 $ 3,100 $ 2,000 $ 1,000 $ 1,000 $ 16,046
Interest, Sponsorship, Return on Investment $ 54 $ 43 $ 4 $ 101
Contracts & Grants $ 2,098 $ 2,098
Total Cash Receipts $ 4,000 $ 2,098 $ 5,043 $ 3,100 $ 2,004 $ 1,000 $ 1,000 $ ‐ $ 18,245
Cash Disbursements
Operating Programs Net of Over‐applied Indirects $ 314 $ 314
Designated Programs $ 5,010 $ 9,678 $ 7,057 $ 2,658 $ 1,361 $ 1,529 $ 2,000 $ 29,293
Contracts & Grants $ 1,968 $ 1,968
Transfer from Grants & Contracts $ (310) $ 310 $ ‐
Transfer from Designated Funds for indirect Application $ (380) $ 172 $ 104 $ 39 $ 14 $ 22 $ 29 $ ‐
Total Cash Disbursements $ 4,634 $ 2,278 $ 9,850 $ 7,161 $ 2,697 $ 1,375 $ 1,551 $ 2,029 $ 31,575
Net Change $ (634) $ (180) $ (4,807) $ (4,061) $ (693) $ (375) $ (551) $ (2,029) $ (13,330)
Ending Balance at 6/30/2022 $ 12 $ 452 $ 27,030 $ 12,503 $ 2,366 $ 157 $ 680 $ 18,649 $ 61,849
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
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