Operating Plan for FY2024, Virginia Innovation Partnership Corporation (VIPC)
Summary
A June 16, 2022 letter 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 FY2024. The letter states that VIPC is the operating arm and managing nonprofit of the Virginia Innovation Partnership Authority (VIPA) and that the attached report fulfills the requirements of the Appropriations Act Item C.1 (Special Session I, 2022). The plan addresses Item 127.C.1 and planned and actual revenue and expenditures along with funding sources. Its chapters cover Investment, Strategic Initiatives, Commercialization, Entrepreneurial Ecosystems, the Executive Office and Centers of Excellence.
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“Operating Plan for FY2024, Virginia Innovation Partnership Corporation (VIPC).”
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June 16, 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 FY2024 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 127 C.1 (Special Session I, 2022).
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, Co-Chair, Senate Finance & Appropriations Committee
The Honorable George L. Barker, Co-Chair, Senate Finance & Appropriations Committee
The Honorable Barry Knight, Chair, House Appropriations Committee
Ms. Anne 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
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 127.C.1
Operating Plan
and
Item 127.C.1a
All planned and actual
revenue and expenditures
along with funding sources
Operating Plan
Fiscal Year
2024
Table of Contents
CCF and Lighthouse Labs Fall Cohort Partner Parade
About VIPA & VIPC
Leadership
FY24 Overview
Click to Skip to Chapter
Operating Plan FY24:
Investment
Strategic Initiatives
Commercialization
Entrepreneurial Ecosystems
Executive Office
Appendices:
Centers of Excellence
Appendix A
Appendix B
1
Presenting VIPA and VIPC to the Virginia Bankers Association
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. Click Here to Learn More
The Virginia Innovation Partnership Corporation (VIPC), Connecting Innovators with
opportunities. The nonprofit operations arm of the Virginia Innovation Partnership Authority (VIPA),
VIPC 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, market development strategies, and ecosystems. VIPC collaborates with local, regional,
state, and federal partners to support the expansion and diversification of Virginia’s economy.
Click Here to Learn More
LEADERSHIP
The Virginia Innovative Partnership Authority (VIPA) Governance Guidelines, VIPA and VIPC are
governed by a board of directors consisting of 11 members as follows: the Secretary of Commerce
and Trade, or a designee; 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:
VIPA Governance
2 2.2-2353 Board Composition &
Virginia Innovation Report and General Assembly Recommendations (2020)
VIPA & VIPC BOARD OF DIRECTORS
Chair Vice Chair
Barbara Boyan The Honorable Caren Merrick
Executive Director, Commonwealth Secretary
Institute for Engineering and Medicine, of Commerce and Trade
Virginia Commonwealth University
Monique Adams Richard Hall Kurt John Andrew Ko
Executive Director Managing Director Global Chief Security Officer Founder
757 Angels Orion Capital Expedia Group Kovexa
Christopher Long Rob Quartel Juan Pablo Segura, CPA Paula Sorrell
President & CEO Executive Chairman of the Founder and Healthcare Associate Vice President,
Washington Resources Board Transformer Innovation & Economic
Associates NTELX Babyscripts Development, George
Mason University
3
VIPA Operating Arm & Managing Nonprofit
EXECUTIVE OVERVIEW FY24 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, opportunity, 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 will collectively scale to drive economic diversification, growth,
and measurable benefits. These programs and services are delivered through
four operational divisions: Investment, Strategic Initiatives, Commercialization, and
Entrepreneurial Ecosystems.
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.
4
VIPC’s Executive Office functions for VIPA and VIPC Divisions include: Finance, Administration, Human Resources,
Policy, Communications and Government Engagement.
Investment Strategic Initiatives Commercialization Entrepreneurial Ecosystems
Seed and early-stage funding Leadership for strategic Grant funding in support of Support and connection for
for Virginia-based companies initiatives that explore and tech-based research, entrepreneurial ecosystems
with high potential for rapid shape programs designed to development & and stakeholders around
growth and significant economic attract and grow innovation and commercialization to drive Virginia, including startup
returns new industries economic growth in Virginia incubators and accelerators
Commonwealth
Virginia Venture Partners Unmanned Systems Commercialization Fund Regional Innovation Fund
Advanced Air Mobility (AAM) Federal Funding Assistance
Program Regional Ecosystem Support and
Virginia Founders Fund
Connection
Smart Communities Virginia Innovation Index
New Funding Structures
SCITI Labs CRCF Portfolio Management
Fund of Funds
Public Safety Innovation Center
VRIF Portfolio Management
The goals and objectives of VIPA are accomplished VIPC’s Executive Office functions for VIPA
by VIPC: and VIPC include:
• Investment • Finance and Administration
• Strategic Initiatives • Human Resources
• Commercialization • Policy, Communications,
• Entrepreneurial Ecosystems and Marketing
5
VIPC leads funding, infrastructure, and policy initiatives to support Virginia’s Innovators,
entrepreneurs, startups, and market development strategies.
VIPC programs support entrepreneurs at different stages of business development and investment
and provides easy access and connection to many opportunities within VIPC and beyond.
Strategic Initiatives
Market Development
First Customer • Capital Formation Grants
• Pilot Programs
Virginia Smart Technology Expansion
Entrepreneurial
Ecosystems
works closely with startup
accelerators, incubators,
technology councils, chambers
of commerce, and other
Virginia- based organizations
that work with entrepreneurs
through the early stages of
business formation and growth
Investment
Seed- and early-stage
investment funds placing
equity investments in
Virginia-based science &
technology startups with
a high potential for
achieving rapid growth
and generating significant
ROI
Commercialization
Grant Program Providing Support for
Virginia’s small business community and its
colleges, universities, and other nonprofit
research institutes
66
Arlington, Virginia
FISCAL YEAR 2023 OVERVIEW
Through Q3 FY23, VIPC has supported innovators in Virginia with over 100 grants and investments,
and more than 75 strategic initiative pilot programs, technology engagements, and sensor
deployments for research completed during the Fiscal Year. VIPC promotes Virginia as a leader in
innovation and entrepreneurship, and actively showcases the startup, commercialization, innovation,
and regional ecosystem successes in the Commonwealth.
VIPC has also planned or supported more than 327 events and stakeholder engagements, directly
supported and engaged with more than 29 thousand founders and innovators from every region of
the commonwealth with lean startup training, acceleration, mentoring, support services, access to
capital, and access to markets.
Our online presence through media engagement, press releases, social media announcements
and event support of partnerships, innovation testing, funding (Grant or Investment)
announcements in celebration of small company success currently reflects more 235 press releases
and more than 9.7 million active links redirecting to Virginia, VIPC and the Virginia Innovation
Partnership Corporation resources, videos, and press information.
FY23 Key Programs and Initiatives include:
• Virginia Venture Partners • SBIR/STTR Training
• VVP SSBCI Direct • Virginia’s Smart Communities Testbed
• VVP SSBCI Fund of Funds • Virginia Accelerator Network
• Virginia Founders Fund • Entrepreneurial Ecosystem Building
• Regional Innovation Fund • Unmanned Systems / Advanced Air
• Petersburg Founders Fund Mobility
• Commonwealth Commercialization Fund • Public Safety Innovation Center
• Cybersecurity
The March ‘23 WalletHub rankings of the nation’s most innovative states lists Virginia as #7 overall
– ahead of NC, TX, TN, GA, and SC. Virginia ranks #4 for Human Capital and #10 for innovation
environment.
Our commitment for FY24 is to accelerate Virginia’s capacity for innovation and entrepreneurship to
top five nationally.
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FISCAL YEAR 2024 OPERATING PRIORITIES
Recognizing the significant role that innovation contributes to Virginia’s economic future, Governor
Youngkin recently released a comprehensive economic development policy - “Compete to Win”.
The policy includes Innovation as one of six strategies to accelerate economic development in
Virginia.
Drive Innovation: Strengthen a statewide culture conducive to entrepreneurship by enhancing
connections between businesses, universities, investors, and talent and reducing burdensome
regulations for small businesses and early-stage companies.
To establish Virginia as a top state to start and grow a business, Virginia will focus on the following
priorities:
• Identify opportunities to enhance state business culture to attract to early-stage investors,
including potential incentives for early-stage capital investments and enhancements to
related regulations.
• Expand and leverage accelerator and incubator networks to spur innovation and startup
creation in the Commonwealth.
• Leverage VIPC’s Entrepreneur-in-Residence Program to promote expanded tech transfer
and commercialization support for Virginia’s universities.
• Leverage GO Virginia and VIPC’s Regional Innovation Fund to expand investment in
regional innovation ecosystems and staff to connect entrepreneurs, universities, and
businesses.
• Identify opportunities to ease regulatory and tax burdens for Virginia small businesses
and startups, including business registration costs, BPOL, property, and unemployment
insurance tax reform.
• Expand support and access to capital for small and veteran-owned businesses and
promote growth and opportunities for Small, Woman-, and Minority-owned (SWaM)
Businesses.
These priorities are embedded into the goals and objectives for each Division below.
Governor Youngkin Announcing PFF Grant Recipients in Petersburg
8
VIPA Operating Arm & Managing Nonprofit
INVESTING IN VIRGINIA
Click Division to Skip to Section
Investment Strategic Initiatives
Commercialization Entrepreneurial
Ecosystems
9
INVESTMENT
FISCAL YEAR 2024 OBJECTIVES
Investment was established to support VIPC Virginia Venture Partners
(VVP) and any new investment vehicles or related initiatives approved
by the VIPA and VIPC Boards. The purpose of Investments 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 Partners has focused on
direct investment, placing equity investments in early-stage science and
technology-based companies through a family of funds spanning tech,
life science, aerospace, and clean energy sectors.
In FY24, with receipt of new funding through the U.S. Treasury
Department State Small Business Credit Initiative (SSBCI) Program,
VVP will place a renewed focus on investing in Virginia’s traditionally
underserved communities. With these funds, VVP will channel additional
capital through the Virginia Founders Fund to invest in female founders
and founders of color and through the Virginia Partners Fund to invest
in traditionally underserved geographies and will initiate investment in
scale-able non-tech product companies.
VVP will also – for the first time – place investments in other seed fund
managers dedicated to Virginia’s economic development through the
newly-launched VVP Fund of Funds Program.
10
Guided by the Virginia Venture Partners Investment Advisory Board (IAB), VIPC management
makes all investment decisions. Investments is also advised by the Division Advisory Committee
on Investment, which offers guidance on new investment programs and policies. Click Here to Learn
More
Primary objectives for Investments in FY24 include:
• Continued development of VIPC VVP’s three-stage model to support companies through
their seed-stage progression:
• Seed-Stage I Pre-GAP Funds
• Seed-Stage II GAP Funds
• Seed Stage III Post-GAP Late Seed 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, GAP Aerospace, and
GAP Clean Energy 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.
• Formation and launch of the Seed-stage III Opportunity Fund launch, to invest pooled
private capital under 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 an 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
initiatives.
• Work with the Advisory Committee on Investment to advise and assist Investments and
VIPA Board on making biennial recommendations to the Governor regarding investment
strategy.
VIPC’s Virginia Venture Partners (VVP) Hosting the Virginia Launch Lounge in Arlington
11
INVESTMENT
12
STRATEGIC
INITIATIVES
FISCAL YEAR 2024 OBJECTIVES
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). FY24 will continue
efforts on the execution of three primary activities: Smart Communities,
Unmanned Systems, and the DHS SCITI Labs program.
Strategic Initiatives will continue to develop the following new areas:
• A Maritime Center of Excellence centered around Hampton
Roads, continuing activity for Port Security using drones, in
conjunction with VISA. The Success Metric is one new award
and implementation, with the Goal of defining job growth
opportunities in the maritime industry.
• The Public Safety Innovation Center, now developed in
conjunction with the Public Safety and Homeland Security
Secretariat of Virginia. The Success Metric is one new pilot
project around emergency response data sharing, with the
Goal of positioning Virginia as the national leader in defining a
new generation of data sharing mechanisms.
• Augmented Reality/Virtual Reality (AR/VR), as initially
embodied in the AccessVR Lab in Stafford County. The
Success Metric is continuation of training operations and
related AR/VR implementations in FY24, with a Goal of 40
13
new jobs and a platform that supports operational users in more than one discipline.
• Quantum computing, focused specifically on the development of quantum computing-
based software solutions for areas such as Advanced Logistics. The Success Metric is
convening a stakeholder-led working group in FY24, with the Goal of a defined set of
objectives for growth of the initial capability and coordination with university partners
about emerging workforce needs.
Other potential initiatives and external funding opportunities under § 2.2-2355 will be pursued
during FY24 as opportunities provide possible mission support and available staff time allows.
Primary objectives for the Strategic Initiatives in FY24 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.” The Success Metric for FY24 is active
engagement with a minimum of 3 additional geographically diverse communities in
the Commonwealth. The Goal is community expertise and engagement around new
technology capabilities that can help drive local job growth and opportunities.
• 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.
• The Success Metric is introduction of at least 3 entrepreneurial companies to market
opportunities related to Smart Communities. The Goal is “first customer” market
development in this growth sector.
• 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. The Success Metric is at least 2 Steering Committee
meetings to advance this goal, and at least one larger Stakeholder meeting to
engage the broader community. The Goal is continued strong industry engagement
supporting the growth of this industry in Virginia.
• Continue to support rapid growth of the UxS industries in Virginia, with continued
focus on infrastructure to support growth of heavy cargo transport and people
transport (Advanced Air Mobility, AAM). The Success Metric is two workgroup
meetings by December 2023, and a recommendation package to the Legislature
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outlining desired investment and support for this sector. The Goal is substantial growth
in the existing UxS infrastructure for AAM, to eventually create jobs and business
opportunities in this emerging area.
• Create new pilot projects with Virginia state agencies and private companies to
demonstrate value proposition of UxS technology. The Success Metric is at least
one new pilot project employing UxS capabilities. The Goal is creation of new market
opportunities for Virginia UxS companies.
• 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 FY24. In May 2022, DHS issued a contract modification to add
funding to our current multi-year contract, and the next option is expected to be exercised in
May, 2023. Management has set a conservative realized revenue target of $2M for SCITI Labs in
FY24. 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. The Success Metric is successful deployment of DHS-provided flood
sensors to communities throughout Virginia. The Goal is a robust set of environmental
sensors that can be applied to a variety of public safety use cases.
• Smart buildings and communities. The Success Metric is use of a network of “Living
Laboratories” in communities throughout to pilot new capabilities that can improve
public safety and government services. The Goal is infrastructure protection against a
range of threats, including cybersecurity, chemical/biological release threats, and other
traditional threats, as well as job opportunities related to mitigating these threats.
• UAS/C-UAS and other Public Safety-related technologies. The Success Metric is
additional demonstration of DHS-conducted C-UAS experiments “in the wild” in
Richmond and elsewhere. The Goal is Virginia leadership for use of these capabilities
in protecting critical infrastructure.
Overall DHS Success Metric: $2M new top line revenue in FY24 and positive customer feedback.
Goal is $4M top line revenue and award of additional contract, providing additional opportunities
for entrepreneurs and early-stage innovators in Virginia.
15
STRATEGIC
INITIATIVES
16
COMMERCIALIZATION
FISCAL YEAR 2024 OBJECTIVES
Commercialization supports and advances early-stage technology
commercialization throughout Virginia, engaging with both private
sector entrepreneurs and university-based researchers as they bring
their innovations to market. The division manages the Commonwealth
Commercialization Fund, a funding program that provides grants
of up to $100,000 to innovative Virginia-based startups and up to
$300,000 to commercialization-minded university researchers, as well
as targeted entrepreneurship support grants to Virginia’s research
universities. Commercialization also manages VIPC’s Federal Funding
Assistance Program, which provides mentoring and training to Virginia
entrepreneurs and innovators seeking grants and contracts from the
federal Small Business Innovation Research (SBIR) and Small Business
Technology Transfer (STTR) programs. As the administrator for the
Virginia Innovation Index, Commercialization also plays a crucial role in
promoting R&D excellence in Virginia and in guiding policymakers and
other stakeholders as they allocate funding to high-growth industries
and industry cluster projects.
Commonwealth Commercialization Fund (CCF)
The CCF drives economic growth by providing grant funding for
innovative technology research, development, and commercialization in
Virginia. CCF includes four distinct programs:
17
Private Sector Grant Program (PS): PS provides competitive grants of up to $100,000 for pre-seed
and seed-stage privately-held Virginia-based technology and life science 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, as well as at Virginia-based nonprofit research institutes.
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 and postdoc fellows who work
with faculty and researchers to orchestrate commercial spinouts that leverage university-owned IP.
Eminent Researcher Recruitment & Retention Grant Program (ERR): ERR provides up to
$1,250,000 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.
Beginning in FY22, the Commercialization Division transitioned all CCF programs to rolling
submissions, giving more flexibility to applicants and allowing the team to support more grant
applications. 39 CCF grants were awarded during FY22, and the division is on target to exceed
its objective of 100 CCF grants during FY23. The Commercialization team supports dedicated
business development and grant management functions. Seasoned directors oversee the CCF
private sector, CCF higher education, and federal funding assistance programs, and an experienced
director oversees division-wide grant administration, including awardee outcomes reporting. The
commercialization team takes pride in providing customized guidance and support to each of its
applicants and awardees. Click Here to Learn More
Primary objectives for Commercialization in FY24 include:
• Increase the success rate of high-potential pre-seed and seed-stage technology and life
science startups throughout Virginia.
• Increase IP commercialization and startup spinouts from Virginia’s colleges and
universities.
• Partner with Virginia’s public research universities to pair academic researchers with
seasoned entrepreneurs.
• Partner with Virginia’s public research universities to attract and retain exceptional
faculty who have a track record of creating commercial spinouts and generating IP with
significant commercial value.
• Increase the SBIR/STTR award success rate of Virginia’s technology and life science
startups.
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COMMERCIALIZATION
19
ENTREPRENEURIAL
ECOSYSTEMS
FISCAL YEAR 2024 OBJECTIVES
Entrepreneurial Ecosystems was established in July 2020 to support
and promote technology-focused entrepreneurship throughout the
Commonwealth. State and regional innovation ecosystems and
entrepreneurial communities in Virginia have grown considerably as
leaders increasingly recognize that the launch and growth of technology-
based and innovation-led companies drive dynamic economic growth and
development. Ecosystem-building initiatives and entrepreneurial support
organizations are bolstering Virginia’s diverse regional and industrial
economies.
Entrepreneurial Ecosystems acts as a supporter, connector, and convener
for entrepreneurial ecosystems and startup communities throughout
Virginia. These stakeholders include accelerators, incubators, innovation
hubs, economic developers, technology councils, chambers of
commerce, industry associations, and others who assist founders during
the early stages of business formation and growth.
Primary objectives for Entrepreneurial Ecosystems in FY24 include:
• Through the Regional Innovation Fund (RIF), provide up to $2
million in grant funding to entrepreneur support organizations and
ecosystem builders.
20
• Through the Virginia Accelerator Network (VAN), strengthen nonprofit, economic
development organizations that assist high-growth founders.
• Through Launch Virginia, develop initiatives to facilitate the growth of innovation
ecosystems and startup communities at the local level.
• Through Innovate Petersburg, connect the city and region to emerging and established
opportunities for technology innovation and startup communities.
ENTREPRENEURIAL
ECOSYSTEMS
21
EXECUTIVE
OFFICE
CCF Roundtable
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.
22
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, contractual, 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
RBTC Tech Nite
23
HUMAN RESOURCES
Human Resources (HR) will continue to provide services in support of the VIPA/VIPC vision and
mission. HR plays a critical role in leading a strategy that collaborates and aligns human capital
with company objectives to meet the needs of all stakeholders. VIPC is dedicated to remaining
a great place to work for employees that have a passion for creating economic opportunities for
others.
Primary objectives for Human Resources in the upcoming fiscal year include:
• Recruit, hire, motivate, and retain high performing, diversified talent in a workforce that is
geographically distributed throughout Virginia.
• Maintain the skills and leadership necessary to successfully carry out VIPC’s mission and
vision through updated workforce design, staffing plans, and succession planning that
considers current skills gaps, an aging workforce, and future staffing expectations.
• Improve employee performance and satisfaction through a more robust new hire
orientation/onboarding program that enables employees to prepare for a successful
transition into VIPC’s workforce and culture.
• Align with current state and federal employment regulations and reduce exposure to
risk by updating policies and procedures and providing compliance training to all staff
members.
• Champion an environment where all types of people can thrive by increasing
engagement that fosters employee commitment and promotes a culture based on solid
values and mutual respect.
• Identify ways to streamline HR processes and efficiency through the exploration of
new technology software platforms that improve mandated reporting and records
management functions.
24
COMMUNICATIONS AND MARKETING
ENGAGEMENT FY24 OVERVIEW
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 Simplification & Development:
• The messaging will remain 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:
• Continue to work with all VIPC 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:
• Continue to 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.
25
VIPA Operating Arm & Managing Nonprofit
COMMUNICATIONS and
MARKETING ENGAGEMENT
26
Appendices
Virginia Unmanned Systems Annual Stakeholder Meeting
& Advanced Air Mobility (AAM) Economic Impact Report
Click to Jump to Section
Centers of Excellence
Appendix A:
• VIPA FY24 Budget Summary
Appendix B:
• VIPC FY24 Budget Summary
• VIPC FY24 Budget Summary cont.
27
INDEPENDENT NONPROFIT CENTERS OF EXCELLENCE
UNDER A SINGLE STATE AUTHORITY
This new 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.
VIPC Tom Tom 2023 Reception
APPENDIX A
28
Virginia Innovation Partnership Authority
Fiscal Year 2024 Operating Budget
(in thousands)
Revenue
Commonwealth Appropriation - General Fund $ 42,396
Interest and Miscellaneous Revenue $ 130
Total Revenue $ 42,526
Expenses and Transfers
VIPA Administrative Expenses $ 3
Transfer to VIPC - FY2024 Appropriation $ 17,046
Transfer to COEs - FY2024 Appropriation $ 25,350
Total Expenses and Transfers $ 42,399
Consolidated Revenue, Expenses, Transfers, and Changes in Net Position
Total Revenue $ 42,526
Total Expenses and Transfers $ 42,399
Change in Net Position $ 127
Beginning Net Position $ 2,621
Ending Net Position $ 2,748
APPENDIX B
Virginia Innovation Partnership Corporation
Fiscal Year 2024 Operating Budget Summary
Operating Funds Designated Funds
COV Other COV
Entrepreneurial Strategic Unmanned Building sale
Discretionary Grants & Commercialization Investment Ecosystems Initiatives Systems Proceeds for
Operating Contracts Division Division Division Fund Fund Opp Fund/127.O Total
(In Thousands)
Beginning Balance 7/1/2023 $ 1,876 $ 1,000 $ 26,404 $ 7,143 $ 5,616 $ - $ 585 $ 18,869 $ 61,493
REVENUE
General Fund Appropriation $ 3,946 $ 5,000 $ 3,100 $ 3,000 $ 1,000 $ 1,000 $ 17,046
Interest, Sponsorships, Return on Investment $ 699 $ 642 $ 159 $ 1,500
Federal and State Contracts & Grants $ 12,910 $ 12,910
Total Revenue $ 4,645 $ 12,910 $ 5,642 $ 3,100 $ 3,159 $ 1,000 $ 1,000 $ - $ 31,456
EXPENSES AND TRANSFERS
Operating and Designated Programs $ 7,047 $ 1,269 $ 2,688 $ 1,756 $ 1,000 $ 1,585 $ 513 $ 15,858
Investments/Grants $ 11,300 $ 11,893 $ 1,200 $ 1,350 $ 4,000 $ 29,743
Federal and State Contracts & Grants $ 1,603 $ 1,603
Transfers and Indirect Application to Designated Programs $ (800) $ 300 $ 267 $ 79 $ 63 $ 91 $ -
Total Expenses $ 6,247 $ 13,203 $ 13,429 $ 3,967 $ 3,169 $ 1,000 $ 1,585 $ 4,604 $ 47,204
Net Change $ (1,602) $ (293) $ (7,787) $ (867) $ (10) $ - $ (585) $ (4,604) $ (15,748)
Ending Balance 6/30/2024 $ 274 $ 707 $ 18,617 $ 6,276 $ 5,606 $ - $ - $ 14,265 $ 45,745
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
APPENDIX B cont.
Virginia Innovation Partnership Corporation
Fiscal Year 2024 Operating Budget by Funding Source
Commonwealth Projects Funded By Appropriation & Other Revenue
(in thousands)
Revenue
Commonwealth Appropriation - General Fund $ 17,046
Interest, Sponsorship, Return on Investment & Miscellaneous Income $ 1,500
Total Revenue $ 18,546
Expenses
Commercialization Division $ 14,819
Investment Division $ 5,916
Entrepreneurial Ecosystems Division $ 3,507
Strategic Initiatives $ 1,166
Unmanned Systems $ 1,793
Policy, Communications and Commonwealth Engagement $ 2,057
Activities funded by building sale proceeds $ 5,043
Total Expenses $ 34,301
Net $ (15,755)
Strategic Initiatives Funded by Contracts & Grants
Program Revenue - State Small Business Credit Initiative (SSBCI) $ 12,201
Program Expense $ 12,201
Profit/(Loss) $ -
Program Revenue - EDA Planning Grant $ 647
Program Expense $ 647
Profit/(Loss) $ -
Program Revenue - SBA FAST $ 29
Program Expense $ 29
Profit/(Loss) $ -
Program Revenue - Fairfax Founders Fund $ 33
Program Expense $ 26
Profit/(Loss) $ 7
Consolidated Revenue & Expenses & Changes in Net Position
Total Revenue $ 31,456
Total Expenses $ 47,204
Change in Net Position $ (15,748)
Beginning Net Position $ 61,493
Ending Net Position $ 45,745
Item 127.C.1b
By program, total grants
made and investments
awarded for each grant and
investment program
and
Item 127.C.1e
Private investment activity
related to the fund of funds
Item 127.C.1.b and C.1.e
As illustrated in item 127 C.1.b and C.1.e FY2024 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 $34.743M.
Objectives Success Metric FY24 Measure Budget Grant/
Investment Amount
Virginia Founders Fund II (VFF II) – Virginia Founders Fund II invests in Number of investments 10 VFF investments placed $2.000M
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 $2.000M
partnership with Virginia accelerators and tech transfer offices.
GAP Fund – Identify, process and close a robust pipeline of seed stage investments Number of investments 18‐25 GAP investments placed, including $8.000M
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 $30M
and follow on investment from
non‐Commonwealth sources
Rate of Return 1 x ROR
Virginia Venture Partners Fund of Funds Implement State Small Business Place first fund commitments by 2QFY24 $0.500M
Credit Initiative Venture Capital
Indirect Investment Program
Opportunity Fund – Maximize the Commonwealth’s position in portfolio returns. Identify and execute one or more Deploy by 6/30/2024 $4.000M
high growth investments
Commonwealth Commercialization Fund (CCF) drives economic growth by funding Stimulate technology Deploy by 6/30/2024 $16.893M
innovative technology research, development and commercialization in Virginia, commercialization, new company Private Sector $5.915M
with particular emphasis on eminent researchers, research infrastructure, and formation, jobs Higher Education $3.378M
increased commercialization in higher education, the private sector, and research Eminent Researcher Recruitment $1.200M
institutes. Entrepreneur In Residence $1.400M
Lab & Equipment* $5M
Entrepreneurial Ecosystems – Administer the Regional Innovation Fund (RIF) as the Deploy up to $2.0M in grant Deploy by 6/30/2024 $1.350M
vehicle through which the Commonwealth grows regional entrepreneurial funding
ecosystem coordinating entities.
*Fund source outside of appropriated budget Total $34.743M
Item 127.C.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 127.C.1d
Cash balances by funding
source and available,
committed and projected
expenditures of cash balances
Virginia Innovation Partnership Authority
Fiscal Year 2024 Cash Budget
(in thousands)
Revenue
Commonwealth Appropriation ‐ General Fund $ 42,396
Interest and Miscellaneous Revenue $ 130
Total Revenue $ 42,526
Expenses and Transfers
VIPA Administrative Expenses $ 3
Transfer to VIPC ‐ FY2024 Appropriation $ 17,046
Transfer to Centers of Excellence ‐ FY2024 Appropriation $ 25,350
Total Expenses and Transfers $ 42,399
Consolidated Revenue, Expenses, Transfers, and Changes in Net Position
Total Revenue $ 42,526
Total Expenses and Transfers $ 42,399
Change in Net Position $ 127
Beginning Net Position at 7/1/2023 $ 2,621
Ending Net Position at 6/30/2024 $ 2,748
Virginia Innovation Partnership Corporation
Fiscal Year 2024 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 7/1/2023 $ 2,088 $ 14,227 $ 26,320 $ 8,048 $ 5,123 $ 312 $ 835 $ 18,869 $ 75,822
Cash Receipts
General Fund Appropriation $ 3,946 $ 5,000 $ 3,100 $ 3,000 $ 1,000 $ 1,000 $ 17,046
Interest, Sponsorship, Return on Investment $ 699 $ 642 $ 159 $ 1,500
Contracts & Grants $ 18,746 $ 18,746
Total Cash Receipts $ 4,645 $ 18,746 $ 5,642 $ 3,100 $ 3,159 $ 1,000 $ 1,000 $ ‐ $ 37,292
Cash Disbursements
Operating and Designated Programs $ 6,977 $ 1,262 $ 2,628 $ 1,682 $ 984 $ 1,510 $ 513 $ 15,556
Investments/Grants $ 11,300 $ 11,893 $ 1,200 $ 1,350 $ 4,000 $ 29,743
Federal and State Contracts & Grants $ 1,603 $ 1,603
Transfers and Indirect Application to Designated Programs $ (800) $ 300 $ 267 $ 79 $ 63 $ 91 $ ‐
Total Cash Disbursements $ 6,177 $ 13,203 $ 13,422 $ 3,907 $ 3,095 $ 984 $ 1,510 $ 4,604 $ 46,902
Net Change $ (1,532) $ 5,543 $ (7,780) $ (807) $ 64 $ 16 $ (510) $ (4,604) $ (9,610)
Ending Balance at 6/30/2024 $ 556 $ 19,770 $ 18,540 $ 7,241 $ 5,187 $ 328 $ 325 $ 14,265 $ 66,212
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
*Grants & Contracts includes cash allocation received/to be received from VSBFA for SSBCI Fund investments
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