Operating Plan for FY2023, Virginia Innovation Partnership Corporation (VIPC) (June 29, 2022)
Summary
A letter dated June 29, 2022 from Susan Aitcheson, CFO of the Virginia Innovation Partnership Corporation (VIPC), to Michael Maul, Director of the Department of Planning and Budget, enclosing the Operating Plan for FY2023. The plan states that VIPC is the operating arm and managing nonprofit of the Virginia Innovation Partnership Authority (VIPA), which it says was established in 2020. It lists four governing principles for VIPA: inclusion, accountability, transparency and leadership. Its table of contents covers a mission and overview section and an operating plan section for the Division of Entrepreneurial Ecosystems, Commercialization, Investment, Strategic Initiatives and the Executive Office.
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“Operating Plan for FY2023, Virginia Innovation Partnership Corporation (VIPC) (June 29, 2022).”
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June 29, 2022
Mr. Michael Maul
Director
Department of Planning and Budget
1111 East Broad Street, Room 5040
Richmond, Virginia 23219
Dear Director Maul:
Enclosed please find the Operating Plan for FY2023 for the Virginia Innovation Partnership
Corporation (VIPC). VIPC is the operating arm and managing nonprofit of the Virginia Innovation
Partnership Authority (VIPA). The attached report fulfills the requirements of the Appropriations Act
Item 135 D.1 (Special Session I, 2021).
Please feel free to call me at 703-689-3021 if you have any questions.
Sincerely,
Susan Aitcheson
CFO
Virginia Innovation Partnership Corporation
cc: The Honorable Caren Merrick, Secretary of Commerce and Trade
The Honorable Janet D Howell, Chair, Senate Finance & Appropriations Committee
The Honorable Barry Knight, Chair, House Appropriations Committee
Ms. Carla Karnes, 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
Dr. Barbara Boyan, VIPC Board of Directors Chair
Mr. Rob Quartel, VIPC Board of Directors Finance Committee Chair
2214 Rock Hill Road
Suite 600
Herndon, VA 20170-4228
Tel.703.689.3000
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
2023
Table of Contents
Section I: VIPA
Mission & Principles… 1
About VIPA… 3
Leadership… 5
FY23 Overview… 7
Section II: VIPC
Operating Plan FY23:
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 The Virginia Innovation
Partnership Corporation (VIPC) 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 VIPC.
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 VIPC
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 Virginia Innovation Partnership
Corporation (VIPC), Connecting Innovators with
opportunities.
VIPC is the nonprofit operations arm of the
Virginia Innovation Partnership Authority
(VIPA), and is the commercialization and seed
stage economic development driver in the
Commonwealth that leads funding, infrastructure
and policy initiatives to support Virginia’s
innovators, entrepreneurs, startups and market
development strategies. VIPC collaborates with
local, regional, state, and federal partners to
support the expansion and diversification of
Virginia’s economy.
3
ABOUT VIPA
The Virginia Innovation Partnership Authority (VIPA) was launched on July 1, 2020 to support the
life cycle of innovation, from translational research; to entrepreneurship; to pre-seed and seed-stage
funding; as well as acceleration, growth, and commercialization, resulting in the creation of new
jobs and company formation. 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.
The scope of programs the Authority may undertake is broad. It provides for a wide range of powers
and programmatic development. The critical needs and opportunities the Authority can address
include:
• Promote the technology-based economic development of the Commonwealth by building,
attracting, and retaining innovation and high-technology jobs and businesses in Virginia.
• Increase industry competitiveness by supporting the application of innovative technologies
that improve productivity and efficiency.
• Attract and provide additional private and public funding in the Commonwealth to enhance
and expand the scientific and technological research and commercialization at the state
and federal research institutions and facilities, including by supporting and working with
technology transfer offices to advance research from proof-of-concept to commercialization
resulting in new business and job creation.
• Attract and provide additional private and public funding to support and enhance
innovation-led entrepreneurship ecosystems and coordination of existing activities and
programs throughout the Commonwealth to create new job opportunities and diversify the
economy.
• Ensure promotion and marketing of Virginia’s statewide innovation economy and support
and coordinate regional marketing efforts to align local and statewide objectives.
• Close the Commonwealth’s support gap through pre-seed and seed-stage investments,
coordination of private investor networks, and enhanced deal syndication.
The VIPA, with VIPC as its operating arm, 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.
4
INDEPENDENT NONPROFIT CENTERS OF EXCELLENCE
UNDER A SINGLE STATE AUTHORITY
With the creation of VIPA in FY2021, several existing Commonwealth-sponsored innovation-
focused organizations were consolidated under the VIPA umbrella. This structure allows for greater
coordination across these organizations, as well as unified periodic reporting through VIPC to the
Secretary of Commerce and Trade and other Commonwealth of Virginia stakeholders.
Click Logos Below to Learn More
Commonwealth Center for Advanced Virginia Catalyst Commonwealth Center for Advanced Commonwealth Cyber Initiative Virginia Academy of Science,
Logistics Systems 501(c)(3) Manufacturing Multi-University Program Engineering and Medicine
501(c)(3) 501(c)(3) 501(c)(3)
Board of Directors Board of Directors Board of Directors •Advisory Board Board of Directors
(10 Members) (16 Members) (12 Members) •Leadership Council (12 Members
Chair: Dawit Haile Chair: David X. Cifu Chair: Greg Benson Exec. Dir.: Luiz DaSilva President: James Aylor
Vice Chair: Vince Barnett CEO: Michael Grisham CEO: John Milton-Benoit
President & Exec. Dir.:
Mark Manasco
Commonwealth Center for Non-stock corporation research Commonwealth Center for Commonwealth Cyber Initiative VASEM is a Virginia nonprofit
Advanced Logistics Systems consortium comprised of the Advanced Manufacturing funds Hub and Node sites corporation established to: Inform,
administers and deploys University of Virginia, Virginia administers private sector to provide resources for the Advocate, and Serve.
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 their 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.
VIPA5 BOARD OF DIRECTORS
Chair Vice Chair
Barbara Boyan The Honorable Caren Merrick
Dean, College of Engineering Commonwealth Secretary
Virginia Commonwealth University of Commerce and Trade
Monique Adams Richard Hall Kurt John Andrew Ko
Executive Director, Managing Director, Chief Cybersecurity Officer, Founder,
757 Angels Orion Capital Siemens USA Kovexa
Christopher Long Rob Quartel Juan Pablo Segura, CPA Paula Sorrell
President & CEO, Executive Chairman Founder and Associate Vice President,
Washington Resources of the Board, Healthcare Transformer, Innovation & Economic
Associates NTELX Babyscripts Development, George
Mason University
66
FISCAL YEAR 2022 OVERVIEW
FY22 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.
• Foster a robust innovation ecosystem in regions across Virginia.
• Invest in and create a critical mass of innovation-led companies serving
commercial markets.
Our commitment for FY23 is to maintain Virginia’s role as a top-tier state 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 VIPC are
committed to building that environment.
7
FISCAL YEAR 2023 OPERATING GOALS
VIPC has a key role in Governor Youngkin’ s economic development goals for Virginia over the next
four years. The challenges for Virginia’s economic development organizations include creating
400,000 new jobs, 10,000 new startups, and a highly skilled workforce that meets the demands of
the Commonwealth’s innovation economy.
During FY23, VIPC will provide leadership for funding, infrastructure, and policy initiatives that
support success for Virginia’s innovators, entrepreneurs, startups, and market development
strategies that create jobs, new startups, and well trained entrepreneurs and innovators.
VIPC Strategic Pillars and Operating Goals:
1. Generate measurable economic development benefits.
• Expanded investment strategies that support more investment while generating
ROI.
• Broaden the funnel of entrepreneurs and commercialization ideas.
• Track consistent set of growth metrics.
2. Be a catalyst for the Commonwealth’s entrepreneurial ecosystem.
• Collaborate with Centers of Excellence (COE) on programs and funding to ensure
synergy.
• Deploy Regional Innovation Fund (RIF) grants to ensure stable ecosystem support.
• Collaborate with accelerators, incubators, university-based entrepreneurial
programs.
• Develop a continuum of support services and investment tools.
3. Support full innovation life cycle, from research to commercialization.
• Expanded partnership with feds (DHS, NIH, EDA) for innovation.
• Commercial-first innovation.
• Expand path-to-market partnerships with companies, early adopters &
communities.
• Pilot projects to prove & validate product/functionality.
• Living laboratory facilities and operational adoption partners to reduce “valley of
death”.
4. Define and prioritize strategic technology domains for investment.
• Launch Virginia Innovation Index.
• Collaborate with technology-focused entities such as VASEM, CCI, MITRE, VEDP.
• Incorporate emerging Federal priorities such as resiliency.
• Incorporate commercial market trends such as autonomy, AR/VR, personalized
medicine.
• Focus on industries and research with potential for Virginia leadership.
• Continuous evolution of technology baseline & focus.
5. Innovation outreach, including marketing and policy development.
• Policy development & advocacy supporting industry-permissive approaches.
• Regional/Statewide marketing.
• Citizen engagement & outreach for awareness and support.
• National/international visibility and publicity in leadership areas.
8
Commonwealth legislation designates VIPC as VIPC’s Executive Office functions for VIPA
the managing nonprofit for VIPA. The goals and and VIPC Divisions include:
objectives of VIPA are accomplished by VIPC:
• Finance and Administration
• Division of Commercialization • Human Resources
• Division of Investment • Policy, Communications,
• Division of Entrepreneurial Ecosystems and Marketing
• Division of Strategic Initiatives
9
VIPA Operating Arm & Managing Nonprofit
EXECUTIVE OVERVIEW FY23 OBJECTIVES
VIPC serves as the managing nonprofit and operating arm of the VIPA. In its
management function, VIPC 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, VIPC provides a continuum of programs and services for innovation-
led development that 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
11
DIVISION of
ENTREPRENEURIAL
ECOSYSTEMS
FISCAL YEAR 2023 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 have recognized that successful technology
and innovation-led startups are important to economic growth and
development. Regional ecosystem-building initiatives and entrepreneurial
support organizations (ESOs) have been established to meet the needs
of Virginia’s diverse and dynamic regional economies. Funding for these
programs includes a variety of grants from federal and state agencies,
local governments, philanthropic foundations, and companies.
The Division acts as a supporter, connector, and convener for
entrepreneurial ecosystems and stakeholders throughout Virginia. These
stakeholders include startup incubators and accelerators, regional training
providers, technology councils, chambers of commerce, 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 VIPC-administered state-funded program that provides
competitive grants to leading Virginia-based entrepreneurial support
organizations (ESOs) and ecosystem builders (EB). RIF grants provide
operational and sustained funding for these partners and RIF grants can
12
be renewed on an annual basis as grantees continue to make progress toward projected outcomes
and metrics.
The Division of Entrepreneurial Ecosystems launched the RIF in March 2021 and made five awards
through June 2021.
Primary objectives for the Division of Entrepreneurial Ecosystems in FY23 include:
• Support innovation ecosystems across the Commonwealth, including organizing, co-
hosting and sponsoring regional and statewide events.
• Provide up to $2.0M in RIF funding to entrepreneurial support organizations and regional
ecosystem builders.
• Map technology-based entrepreneurial ecosystem resources to determine gaps in
services available at the regional and statewide levels.
• Expand Federal Funding Assistance Program (FFAP) to support 350 clients.
• Establish a multi-tiered customer development program that assists entrepreneurs gain
access to commercial, state, and federal markets.
DIVISION of
ENTREPRENEURIAL ECOSYSTEMS
13
DIVISION of
COMMERCIALIZATION
FISCAL YEAR 2023 OBJECTIVES
The Division of Commercialization supports and advances technology
commercialization throughout Virginia, with particular emphasis on
higher education and the private sector. It plays 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. The Division manages the Commonwealth
Commercialization Fund (CCF), a Commonwealth-funded grant vehicle
with programs that support seed-stage privately-held technology
companies and promising technology commercialization projects within
Virginia’s colleges, universities, and other nonprofit research institutes.
Commonwealth Commercialization Fund (CCF)
The CCF drives economic growth by providing grant funding for
innovative technology research, development, and commercialization in
Virginia. CCF includes five distinct programs:
Private Sector Grant Program (PS): PS provides competitive grants of
up to $75,000 for seed-stage privately-held Virginia-based technology
startups.
Higher Education Grant Program (HE): HE provides competitive grants
of up to $300,000 for promising research commercialization projects
within Virginia’s public and private research universities.
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Eminent Researcher Recruitment & Retention Grant Program (ERR): ERR provides up to $250,000
per year to each of Virginia’s public research universities to help recruit and retain eminent
researchers and faculty who will be leaders in commercializing and productizing promising research
and development.
Entrepreneur-in-Residence Grant Program (EIR): EIR provides up to $250,000 per year to each
of Virginia’s public research universities to hire entrepreneurial mentors who work with faculty and
researchers to orchestrate commercial “spin-outs” that leverage university-owned IP.
Laboratory & Equipment Grant Program (L&E): L&E provides up to $1M per year to each of
Virginia’s public research universities to support the development of next-generation research
laboratories. L&E grants can be paired with ERR grants to support the recruitment of new faculty or
the retention of existing faculty.
Beginning in FY22, the Commercialization Division transitioned CCF to rolling submissions,
giving more flexibility to applicants and allowing the team to support more grant applications. The
Commercialization team was also reorganized in FY22 to support dedicated business development
and grant management functions. The division has seasoned directors overseeing each of the
private sector and higher education CCF programs, and an experienced director overseeing
grant administration, including awardee outcomes reporting. This team structure allows the
Commercialization Division to provide customized guidance and support to each of its applicants
and awardees. Click Here to Learn More
Primary objectives for the Commercialization Division in FY23 include:
• Attract and review at least 150 CCF private sector grant applications, and commit at least
$4.6M in awards.
• Attract and review at least 80 CCF higher ed grant applications, and commit at least
$3.5M in awards.
• Commit at least $1.4M to Virginia colleges and universities through the ERR program.
• Commit at least $800,000 to Virginia colleges and universities through the EIR program
• Commit at least $5M to Virginia colleges and universities through the L&E program.
• Support the portfolio of CCF, CRCF, and VRIF award recipients.
• Prepare and submit the FY23 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.
• Collaborate with the Virginia Academy of Science, Engineering, and Medicine (VASEM) to
develop recommendations for founder-friendly IP licensing policies and startup access to
facilities at Virginia’s colleges and universities.
• Convene and consult with the Advisory Committee on Commercialization.
• Convene VIPC’s Eminent Researchers, with the objective to build community and
collaboration across Virginia’s research universities.
15
DIVISION of
COMMERCIALIZATION
16
DIVISION of
INVESTMENT
FISCAL YEAR 2023 OBJECTIVES
The Division of Investment was established to support VIPC Virginia
Venture Partners and any new investment vehicles approved by the
VIPA and VIPC 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.
Historically, Virginia Venture Partner has focused on direct investment,
placing equity investments in early-stage science and technology-based
companies through 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. In FY22, Virginia Venture Partners added
the Virginia Partners Fund, providing a specific focus on Virginia’s
traditionally underserved geographies.
VIPC management oversees VIPC GAP Funds and is advised in
investment decisions by the Virginia Venture Partners Investment
Advisory Board (IAB). Click Here to Learn More
The Division of Investments is also advised by the division Advisory
Committee on Investment, which offers guidance on new investment
programs and policies.
17
Primary objectives for the Investment Division in FY23 include:
• Continued development of VIPC GAP Funds three-stage model to support companies
through their seed-stage progression:
• Seed-Stage I Pre-GAP Funds
• Seed-Stage II VIPC VVP GAP Funds
• Seed-Stage III VIPC GAP Funds Spin-Out Fund
• Continued focus on Seed Stage I, pre-GAP investments through the Virginia Founders
Fund, Virginia Partners Fund, and Innovation Fund program offerings and on Seed-Stage II
GAP investments through flagship GAP Tech, GAP Life Science, and GAP Clean Tech
funds.
• Implementation of the Department of Treasury State Small Business Credit Initiative
(SSBCI) Venture Capital Program to enhance investment capacity, both the number of
investments and dollars deployed through Virginia Venture Partners’ existing Stage I and
II direct investment channels, and the extension of external investment capacity through
indirect investment in external fund managers.
• Exploration of the Seed-Stage III Opportunity Fund launch, to invest pooled private capital
under the management of the VIPC Virginia Venture Partners Team into selected Seed
Stage II portfolio companies and other late seed-stage Virginia start-ups. VIPC will pilot the
fund with initial draw-down of building proceeds for designated investments.
• Design and implement other indirect investment programs. These may encompass the
creation of sidecar funds, additional intermediary investment, or co-investment vehicles
aligned with VIPC’s investment mission or intra-VIPC fund transfer to support other divisional
initiatives.
• 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.
18
DIVISION of
INVESTMENT
19
DIVISION of
STRATEGIC INITIATIVES
FISCAL YEAR 2023 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). FY23 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. Strategic Initiatives Division will also continue
to develop the following new areas initiated in FY22:
• A Maritime Center of Excellence centered around Hampton
Roads, conducting activity under the FY22 Announcement
of Opportunity solicitation with VISA.
• The Public Safety Innovation Center, now initiated, and being
developed in conjunction with the Public Safety and Homeland
Security Secretariat of Virginia.
• Augmented Reality/Virtual Reality (AR/VR), as initially
embodied in the AccessVR Lab at GCubed in Stafford County.
• 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 FY23 as opportunities
provide possible mission support and available staff time allows.
20
Primary objectives for the Strategic Initiatives Division in FY23 include:
Smart Communities Click Here to Learn More
Key priorities in support of this strategic vision include:
• Build partnerships and develop proposal and action plan for the NSF Regional
Innovation Engines program using strategies outlined in VIPC’s Multi-Agency Regional
Technology Hub Alliance (MARTHA) concept document.
• 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 VIPC 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, pivoting towards
infrastructure to support growth of heavy cargo transport and eventually people
transport (Advanced Air Mobility, AAM).
• 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 FY23. In May 2021, DHS issued a contract modification to add
funding to our current multi-year contract, and a second option is expected to be exercised in
May, 2022. Management has set a conservative realized revenue target of $2M for SCITI Labs in
FY23. 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 environmental threats such as flood and wildfire ignition using networked
IoT sensors.
• Smart buildings and communities.
• UAS/C-UAS and other Public Safety-related technologies.
21
Budget and Resources
Appropriated Strategic Initiatives budget for FY22/23 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, 2022.
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.
SYSTEMS
Under the auspices of the CIO, the FY23 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 VIPC specific controls, using the NIST 800.53 risk management guidelines.
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DIVISION of
STRATEGIC INITIATIVES
23
EXECUTIVE
OFFICE
FINANCE AND ADMINISTRATION
The VIPC Finance and Administration, led by the Chief Financial
Officer, manages the financial responsibilities of the VIPC organization,
initiatives, and programs funded.
VIPC F&A also supports the VIPA Board of Directors in its financial and
impact oversight of several other state-funded organizations, known as
Centers of Excellence (COE). Those organizations include::
• Virginia Catalyst (also known as The Virginia Biosciences
Health Research Corporation (VBHRC)
• The Commonwealth Center for Advanced Manufacturing
(CCAM)
• The Commonwealth Cyber Initiative (CCI)
• The Commonwealth Center for Advanced Logistics Systems
(CCALS)
VIPC is advised by the Administration and outside legal counsel to
assure relationships and responsibilities are clear between VIPA, VIPC,
and other groups and organizations regarding governance roles and
accounting requirements.
24
Primary objectives for the VIPC 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 for the organization, including
the design and operation of a federal and state compliant financial management system,
and a comprehensive system of internal controls.
• Provide a financial management process for decision-making and ensure that programs
operate within the agreed-upon financial envelope.
• Work with the VIPA Board of Directors and Centers of Excellence on metrics reporting for
entities funded under the VIPA umbrella.
HUMAN RESOURCES
In FY23, 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
VIPC’s vision and mission.
Primary objectives for Human Resources in the upcoming fiscal year include:
• HR will work to value and align human capital with company initiatives, values, strategies,
and the needs of all stakeholders.
• Maintain VIPC as a great place to work for employees with a passion for creating
economic opportunities for others.
• Maintain the skills and leadership necessary to successfully carry out VIPC’s mission and
vision through workforce design, staffing plans, and succession planning that consider
current skills gap, an aging workforce, and future staffing expectations.
• Continue to align with the ONE Virginia Plan as VIPC’s compass for Diversity, Equity, and
Inclusion.
• Recruit, hire, motivate, and retain high-performing, diversified talent in a workforce that is
geographically distributed throughout Virginia.
• Ensure a high-performance workforce by implementing an online performance
management system that effectively links performance with organizational goals.
• In conjunction with newly designed compensation benchmark strategy, HR will develop a
consistent process for employee promotions.
• Prepare new managers for success by evaluating and implementing management/
leadership development programs.
• 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.
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HUMAN RESOURCES
26
COMMUNICATIONS AND MARKETING
ENGAGEMENT FY23 OVERVIEW
The Virginia Innovative Partnership Authority (VIPA) & the The Virginia Innovation Partnership
Corporation (VIPC) 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 entrepreneurs, entrepreneurial funding and
networking opportunities; strategic initiatives, innovation, and research; commercialization,
and investment in emerging and impactful technologies.
Ensure Consistent Messaging:
• Work with all Divisions and initiative leaders to ensure that messaging is impactful, relevant,
and effective for engaging their specific audience/ stakeholders while educating about VIPC
as a whole via the use of a variety of modalities, including dynamic presentations, video
and visual media outreach, social networks, and in-person/ virtual events.
Prioritize Relationships, Partnerships & Connection to the Commonwealth:
• Develop and maintain partnerships/relationships that extend frictionless access to
information and support. This endeavor includes updating Commonwealth Agencies,
Partner Groups, Stakeholder Networks, Regional Leadership, organizations, and Media
groups regarding innovation advancements, opportunities, and resources that the
Commonwealth has to offer to entrepreneurs and innovators.
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VIPA Operating Arm & Managing Nonprofit
COMMUNICATIONS and
MARKETING ENGAGEMENT
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Appendices
Click to Jump to Section
Appendix A:
• VIPA FY23 Budget Summary
Appendix B:
• VIPC FY23 Budget Summary
• VIPC FY23 Budget Summary cont.
APPENDIX A
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Virginia Innovation Partnership Authority
Fiscal Year 2023 Operating Budget
(in thousands)
Revenue
Commonwealth Appropriation - General Fund $ 42,341
Interest and Miscellaneous Revenue $ 3
Total Revenue $ 42,344
Expenses and Transfers
VIPA Administrative Expenses $ 3
Transfer to VIPC - FY2023 Appropriation $ 16,991
Transfer to COEs - FY2023 Appropriation $ 25,350
Total Expenses and Transfers $ 42,344
Consolidated Revenue, Expenses, Transfers, and Changes in Net Position
Total Revenue $ 42,344
Total Expenses and Transfers $ 42,344
Change in Net Position $ -
Beginning Net Position $ 2,593
Ending Net Position $ 2,593
APPENDIX B
VIPA Operating Arm & Managing Nonprofit
Virginia Innovation Partnership Corporation
Fiscal Year 2023 Budget
Operating Funds Designated Funds
COV Other COV
Entrepreneurial Strategic Unmanned
Discretionary Grants & Commercialization Investment Ecosystems Initiatives Systems Building sale
Operating Contracts Division Division Division Fund Fund Proceeds Total
(In Thousands)
Beginning Balance at 7/1/2022 $ 1,043 $ 994 $ 32,656 $ 10,691 $ 4,189 $ 61 $ 1,105 $ 20,678 $ 71,417
REVENUE
General Fund Appropriation $ 3,891 $ 5,000 $ 3,100 $ 3,000 $ 1,000 $ 1,000 $ 16,991
Interest, Sponsorship, Return on Investment $ 70 $ 69 $ 11 $ 150
Contracts & Grants $ 553 $ 553
Total Revenue $ 3,961 $ 553 $ 5,069 $ 3,100 $ 3,011 $ 1,000 $ 1,000 $ - $ 17,694
EXPENSES AND TRANSFERS
Operating and Designated Programs $ 5,838 $ 14,027 $ 10,383 $ 2,171 $ 1,017 $ 1,599 $ 3,000 $ 38,035
Contracts & Grants $ 553 $ 553
Transfers and Indirect Application to Designated Programs $ (1,033) $ 450 $ 333 $ 70 $ 33 $ 51 $ 96 $ -
Total Expenses $ 4,805 $ 553 $ 14,477 $ 10,716 $ 2,241 $ 1,050 $ 1,650 $ 3,096 $ 38,588
Net Change $ (844) $ - $ (9,408) $ (7,616) $ 770 $ (50) $ (650) $ (3,096) $ (20,894)
Forecasted Ending Balance at 6/30/2023 $ 199 $ 994 $ 23,248 $ 3,075 $ 4,959 $ 11 $ 455 $ 17,582 $ 50,523
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
APPENDIX B cont.
VIPA Operating Arm & Managing Nonprofit
Virginia Innovation Partnership Corporation
Fiscal Year 2023 Operating Budget by Funding Source
Commonwealth Projects Funded By Appropriation & Other Revenue
(in thousands)
Revenue
Commonwealth Appropriation - General Fund $ 16,991
Interest, Sponsorship, Return on Investment & Miscellaneous Income $ 150
Total Revenue $ 17,141
Expenses
Commercialization Division $ 15,788
Investment Division $ 11,714
Entrepreneurial Ecosystems Division $ 2,452
Strategic Initiatives $ 1,156
Unmanned Systems $ 1,804
Policy, Communications and Commonwealth Engagement $ 1,752
Activities funded by building sale proceeds $ 3,369
Total Expenses $ 38,035
Net $ (20,894)
Strategic Initiatives Funded by Contracts & Grants
Program Revenue - VDEM iFLOWS $ 500
Program Expense $ 500
Profit/(Loss) $ -
Program Revenue - SBA FAST $ 53
Program Expense $ 53
Profit/(Loss) $ -
Consolidated Revenue & Expenses & Changes in Net Position
Total Revenue $ 17,694
Total Expenses $ 38,588
Change in Net Position $ (20,894)
Beginning Net Position $ 71,417
Ending Net Position $ 50,523
Item 135.D.1b
By program, total grants
made and investments
awarded for each grant and
investment program
and
Item 135.D.1e
Private investment activity
related to the fund of funds
Item 135.D.1.b and D.1.e
As illustrated in item 135.D.1.b and D.1.e FY2023 Operating Plan of 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 the managing non-profit at a total budgeted amount of $21.600M.
Objectives Success Metric FY22 Measure Budget Grant/
Investment Amount
Virginia Founders Fund II (VFF II) – Virginia Founders Fund II invests in Number of investments 10 VFF investments placed $1.200M
demographically diverse founders including minority founders of color and women.
Virginia Partners Fund (VPF) – VPF invests in geographically diverse companies in Number of investments 10 VPF investments placed $1.400M
partnership with Virginia accelerators and tech transfer offices.
GAP Fund – Identify, process and close a robust pipeline of seed stage investments Number of investments 12-16 GAP investments placed, including $4.400M
and maintain portfolio performance to recover all invested capital over the life of Innovation and Follow-on Investments
the investment program.
Leverage Cash: amount of initial At least $25M
and follow on investment from
non-Commonwealth sources
Rate of Return 1 x ROR
Opportunity Fund – Maximize the Commonwealth’s position in portfolio returns. Identify and execute one or more Deploy by 6/30/2023 $3.000M
high growth investments.
Commonwealth Commercialization Fund (CCF) drives economic growth by funding Stimulate technology Deploy by 6/30/2023 $10.300M
innovative technology research, development and commercialization in Virginia, commercialization, new company Private Sector $4.600M
with particular emphasis on eminent researchers, research infrastructure, and formation, jobs Higher Education $3.500M
increased commercialization in higher education, the private sector, and research Eminent Researcher Recruitment $1.400M
institutes. Entrepreneur In Residence $0.800M
Lab & Equipment* $5M
Entrepreneurial Ecosystems – Administer the Regional Innovation Fund (RIF) as the Deploy $1.3M in grant funding Deploy by 6/30/2023 $1.300M
vehicle through which the Commonwealth grows regional entrepreneurial
ecosystem coordinating entities. (Budget established prior to finalization of the
Appropriation Act which expands the RIF.)
*Fund source outside of appropriated budget Total $21.600M
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 2023 Cash Budget
(in thousands)
Revenue
42341 $ 42,341
Commonwealth Appropriation ‐ Non General Fund
Interest and Miscellaneous Revenue $ 3
Total Revenue $ 42,344
Expenses and Transfers
VIPA Administrative Expenses $ 3
Transfer to VIPC ‐ FY2023 Appropriation $ 16,991
Transfer to Centers of Excellence ‐ FY2023 Appropriation $ 25,350
Total Expenses and Transfers $ 42,344
Consolidated Revenue, Expenses, Transfers, and Changes in Net Position
Total Revenue $ 42,344
Total Expenses and Transfers $ 42,344
Change in Net Position $ ‐
Beginning Net Position at 7/1/2022 $ 2,593
Ending Net Position at 6/30/2023 $ 2,593
Virginia Innovation Partnership Corporation
Fiscal Year 2023 Cash Budget
Operating Funds Designated Funds
COV Other COV
Entrepreneurial Strategic Unmanned
Discretionary Grants & Commercialization Investments Ecosystems Initiatives Systems Building Sale
Fund Contracts Division Division Division Fund Fund Proceeds Total
(In Thousands)
Beginning Balance at 7/1/2022 $ 1,530 $ 844 $ 32,510 $ 12,048 $ 4,081 $ 575 $ 1,123 $ 20,678 $ 73,389
Cash Receipts
General Fund Appropriation $ 3,891 $ 5,000 $ 3,100 $ 3,000 $ 1,000 $ 1,000 $ 16,991
Interest, Sponsorship, Return on Investment $ 70 $ 69 $ 11 $ 150
Contracts & Grants $ 553 $ 553
Total Cash Receipts $ 3,961 $ 553 $ 5,069 $ 3,100 $ 3,011 $ 1,000 $ 1,000 $ ‐ $ 17,694
Cash Disbursements
Operating and Designated Programs $ 5,788 $ 14,027 $ 10,333 $ 2,171 $ 967 $ 1,579 $ 3,000 $ 37,865
Contracts & Grants $ 553 $ 553
Transfers and Indirect Application to Designated Programs $ (1,033) $ 450 $ 333 $ 70 $ 33 $ 51 $ 96 $ ‐
Total Cash Disbursements $ 4,755 $ 553 $ 14,477 $ 10,666 $ 2,241 $ 1,000 $ 1,630 $ 3,096 $ 38,418
Net Change $ (794) $ ‐ $ (9,408) $ (7,566) $ 770 $ ‐ $ (630) $ (3,096) $ (20,724)
Ending Balance at 6/30/2022 $ 736 $ 844 $ 23,102 $ 4,482 $ 4,851 $ 575 $ 493 $ 17,582 $ 52,665
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
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