FY2023 Annual Report for the Virginia Innovation Partnership Authority (November 3, 2023)

Summary

Letter dated November 3, 2023 from the CFO of the Virginia Innovation Partnership Corporation to the Director of the Department of Planning and Budget, enclosing the FY2023 Annual Report for the Virginia Innovation Partnership Authority (VIPA) and the Virginia Innovation Partnership Corporation (VIPC). The letter states that the report fulfills Code of Virginia § 2.2-2355 (20) and (17) and the 2023 Appropriations Act Item D requirements. The Annual Report 2023 describes VIPC as the nonprofit operations arm of VIPA and the commercialization and seed stage economic development driver in the Commonwealth. It also describes independent nonprofit Centers of Excellence under a single state authority, with links to each Center's annual report.

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“FY2023 Annual Report for the Virginia Innovation Partnership Authority (November 3, 2023).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-rd599-05bd35031d/, SHA-256 b741ca8569303a3f9fbe7eb85978d6b0b4d75820fbf0ae29757dc5d718c361c2.

Full text

November 3, 2023

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 FY2023 Annual Report for the Virginia Innovation Partnership Authority
(VIPA) and the Virginia Innovation Partnership Corporation (VIPC). The report fulfills the Code
of Virginia § 2.2-2355 (20) and (17) and the 2023 Appropriations Act Item 127 D requirements.

If any questions, please call me at 703-689-3021.

Sincerely,

Susan Aitcheson
CFO
Virginia Innovation Partnership Corporation

cc: The Honorable Governor Glenn Youngkin
The Honorable Adam Ebbin, Chair, Senate General Laws and Technology
The Honorable Emily Brewer, Chair, House Communications, Technology and Innovation
The Honorable Caren Merrick, Secretary of Commerce and Trade
The Honorable Janet D Howell, Co-Chair, Senate Finance & Appropriations Committee
The Honorable George 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
www.vipc.org
Annual Report
2023
In accordance with 2023 Appropriation Act Item 127.D and Code of Virginia § 2.2‐2355 (17) and (20),
The Virginia Innovation Partnership Corporation is pleased to submit the following report describing
key programs and economic performance for the Commonwealth of Virginia.
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
2

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.

Below is an overview and direct link to each of the Centers of Excellence (COE) annual reports.
VIPC does not approve or include their outcomes in our report metrics. Click logos for annual reports.

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: Nezih Yaramanoglu Exec. Dir.: Luiz DaSilva President: James Aylor
Vice Chair: Vince Barnett CEO: Michael Grisham CEO: John Milton-Benoit

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.

Lighthouse Labs Partner Parade
3

FY2023 PROGRAM OVERVIEW
Click to Skip to Section

Commercialization Entrepreneurial
Ecosystems

Strategic
Investments Initiatives
4

COMMERCIALIZATION

VIPC TOMTOM Reception 2023

Critical Early Funding for Entrepreneurs
& University-based Researchers
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. This team manages the Commonwealth
Commercialization Fund (CCF), 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
5

Virginia. CCF includes four distinct programs:

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.

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.

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 “spin-outs” that leverage university-owned
IP.

Beginning in FY22, Commercialization 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 133 CCF grants were awarded 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. The Commercialization team takes pride in providing customized
guidance and support to each of its applicants and awardees.
Click Here to Learn More
6

COMMERCIALIZATION
At a Glance

October 2023
7

ENTREPRENEURIAL
ECOSYSTEMS

VIPC’s Virginia Accelerator Network (VAN) Annual Meeting 2023

Strengthening Communities
Entrepreneurial Ecosystems was founded in 2020, to support and
promote technology-focused entrepreneurial activities throughout
the Commonwealth. Regional entrepreneurial ecosystems in Virginia
have grown significantly over the last several years as communities
recognize that successful science and technology startups are key
drivers of economic growth and development. Across the state, a variety
of entrepreneur support organizations (ESOs) are actively assisting
promising entrepreneurs and collaborating with economic development
stakeholders in the private and public sectors.

The Entrepreneurial Ecosystems team serves as a catalyst, connector,
and convener for innovation ecosystem and startup community
stakeholders throughout Virginia. These include startup accelerators,
business incubators, innovation hubs, venture development organizations,
regional technology councils, chambers of commerce, and other Virginia-
based organizations that assist high-growth, innovation-led 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
be renewed on an annual basis as grantees continue to make progress
8

toward projected outcomes and metrics. The first RIF grants were awarded in June 2021 and eight
(8) awards have been made through June 30, 2023.

Primary objectives for Entrepreneurial Ecosystems in FY23 included:
• 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.
• Establish and execute the Petersburg Founders Fund (PFF) a grant program to assist
entrepreneurs and companies in one of Virginia’s most economically-challenged
communities.
• Establish a multi-tiered customer development pilot program to assist entrepreneurs in
gaining access to commercial and governmental markets. (Responsibility was transferred
to the Strategic Initiatives team)

For activities associated with Entrepreneurial Ecosystems, four (4) RIF grants totaling $650,000 were
awarded in FY23 to enable regional entrepreneurial support and ecosystem-building initiatives. These
grants supported organizations located in GO Virginia regions 2 (Roanoke-Blacksburg-Lynchburg), 4
(Richmond-Petersburg), 8 (Shenandoah Valley), and 9 (Charlottesville).

Additionally, Entrepreneurial Ecosystems provided $200,000 to support the Virginia SBDC Network’s
Innovation Commercialization Assistance Program (ICAP) which provides mentoring and training for
very early-stage founders across the Commonwealth. These efforts increased the geographic reach
of EED to all nine GOVA Regions.

These programs anticipate $110.25 million of initial and follow-on capital and 453 jobs created over
the next 5 years from 1,067 entrepreneurs educated and 459 companies assisted. Based on interim,
final, and out-year reporting for RIF and ICAP activities funded from inception through FY23, funded
programs reported the following cumulative outcomes:
• $179.3 million in capital raised
• 971 entrepreneurs educated
• 1,263 companies assisted
• 468 jobs created
• 15,591 mentoring hours supported
• 117 events held with 4,926 attendees
• 27 new companies formed
• 42 regional collaborations supported

ENTREPRENEURIAL ECOSYSTEMS
At a Glance

October 2023
10

INVESTMENT

Lighthouse Labs Partner Parade

Investing in Virginia Companies
Investments was established to support VIPC Virginia Venture Partners
and any new investment vehicles 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 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 VVP and is advised in investment
decisions by the Virginia Venture Partners’ Investment Advisory Board
(IAB). Click Here to Learn More

Investments is also advised by an Advisory Committee on Investment,
which offers guidance on new investment programs and policies.
11

INVESTMENT
At a Glance

October 2023
12

STRATEGIC
INITIATIVES

Electra.Aero Hyrid-Electric STOL Demonstration

Embracing Innovation in the Commonwealth
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 four primary activities: Smart Communities,
Unmanned Systems, the Public Safety Innovation Center, and the DHS
SCITI Labs program. Strategic Initiatives will also continue to develop the
following areas continued from FY23:

• A Maritime Center of Excellence centered around Hampton
Roads, continuing work with VISA around the Port of Virginia
and with Virginia Sea Grant around sea level rise and waterways
impacts.
• Workforce of the Future efforts including STEM Camps and
Clubs with middle/high schools, and Augmented Reality/
Virtual Reality (AR/VR), including law enforcement and crisis
intervention training.
• 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 FY24 as opportunities
provide possible mission support and available staff time allows.
13

Primary objectives for Strategic Initiatives in FY23 include:

Public Safety Innovation Center at VIPC Click Here to Learn More
Assist with the development and implementation of new and/or improved technology for use by
public safety emergency responders at the local, state, and federal level.

Key goals of this strategic vision include:
• Establish relationships for the exchange of concepts and best practices between the
PSIC and other public safety organizations such as local responders, state agencies,
commercial or non-profit groups, the Department of Homeland Security, and other
federal government agencies/entities.
• Seek out and assess new innovative technologies that could potentially aid and
benefit public safety practitioners.
• Assist in the development, testing, and validation of new technologies and
equipment.
• Identify, facilitate, and support new initiatives and pilot projects that will further the
transition to practice and use of innovative technologies for public safety.
• Identify and help implement and deliver public safety training, primarily around new
technologies and capabilities.
• Provide and/or coordinate provision of public safety Subject Matter Expertise (SME)
to local and state public safety and other government entities in the Commonwealth.
• Continue to build upon the relationship with the Commonwealth Virginia Department
of Public Safety and Homeland Security Secretariat and the federal Department of
Homeland Security to advance public safety across various areas to include use of
drones, specialized training activities, operational experimentation, IoT, and related
technologies, emerging activities relating to Port security and safety, and other public
safety centric technology advancement.

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. Management has set a conservative realized revenue
target of $3M 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.
• Smart buildings and communities.
• UAS/C-UAS and other Public Safety-related technologies.
14

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 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,continuing efforts 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).
15
T
STRATEGIC
VIRGINIA INNOVATION INITIATIVES
PARTNERSHIP
At a Glance CORPORATION
VIRGINIA INNOVATION
PARTNERSHIP
Division of CORPORATION
Strategic Initiatives Federal DHS Fun
Division of Strategic Initiatives Federal
VIPC DHS Fundingini
Strategic De
VIPC Strategic initiatives
Total S&T Funding
Total S&T Funding
To
Total Private
to 15 to 15 InvestmentIn
Technologies/Companies
Technologies/Companies Attracted A

$16.5
$16.5 $131.3
$1
VIRGINIA INNOVATION
PARTNERSHIP CORPORATION
MILLION MILLION
MILLION
SMART COMMUNITIES M
*Final FYE22 impact data will be available in November 1 an
Department of Homeland Securi
Department
Science of Homeland
and Technology Director
Science and Technology D
VIRGINIA INNOVATION
PARTNERSHIP CORPORATION
SMART COMMUNITIES
VIRGINIA INNOVATION
PARTNERSHIP CORPORATION
SMART
*Final FYE22 impactCOMMUNITIES
data will be available in November 1 annual report

*Final FYE22 impact data will be available in November 1 annual report

October 2023
16

Appendices
Investments
Virginia Venture Partners (VVP) Growth Acceleration Programs (GAP)

Entrepreneurial Ecosystems
Regional Innovation Fund (RIF)

Commercialization
Commonwealth Commercialization Fund (CCF)
17

Virginia Venture Partners (VVP)
Growth Acceleration Program (GAP)
The FY2023 activity below is provided in response to Section 127.D.2A of the Appropriations Act.

Since GAP investments are, by design, pre-seed and seed stage and intended to leverage private
investment and stimulate the next generation of new technology companies, job creation, and tax
revenue impact are longer-term objectives.

I. The number of companies receiving investment from the fund:
a. FY23: 54 companies
b. Inception-to-date: 305 companies1

II. The state investment and amount of privately leveraged investments per company:
a. FY23: VVP invested $9.9M and leveraged $96.7M in angel and venture dollars
on FY23 investments. During FY23, VVP’s investments leveraged $364.2M.
b. Inception-to-date: VVP has invested $51.7M and has leveraged $1.9B in angel
and venture dollars, $364.2M of which was leveraged during FY23.

III. The estimated number of jobs created or preserved during FY23:
a. FY23: 704 direct jobs in companies invested in by VVP in FY23.
b. Inception-to-date: In FY23, companies reported that 3,680 direct jobs were
created or preserved by companies invested in which VVP invested FY23 or
before.

IV. The estimated tax revenue generated during FY232:
a. FY23 investments: $3,401,518
b. Inception-to-date: $17,850,690

V. The number of companies who have received investments from VVP fund still operating
in Virginia*
a. FY23 investments: 54 out of 54
b. Inception‐to‐date: 157 out of 305i2
18

Of the 148 companies no longer operating in Virginia:
I. Nine (9) are active VVP GAP Funds portfolio companies that have moved from
the Commonweal:
1. Six (6) moved from Virginia to other states after the three-year
requirement to be headquartered in Virginia timed out.
2. One (1) moved from Virginia within the three-year requirement and VIPC
renegotiated favorable investment terms in lieu of a repayment fee.
3. Two (2) were part of MACH37 and winding down operations. VIPC
intends to write-off and/or begin the collection process.

II. 139 are Inactive companies
1. 60 have failed
2. 79 have been acquired or paid back VIPC
a. The above total of 79 includes one company for which VVP
received shares of an acquiring company in lieu of a cash
payout. While this acquiring company was itself acquired
prior to the 6/30/23 date of this report, VVP did not have the
opportunity to redeem its shares prior to that date. For this
reason, the acquiring company in which VVP holds shares
is not included in the total of 79, above, or elsewhere as an
independent investment.

*Data only includes companies in which VVP has placed a direct investment. Therefore, it excludes
five companies, for which VVP was granted ownership in a newly formed entity as a result of a
merger or acquisition without making any additional investments.

VI. Realized Return on Investment
a. FY23 investments: $0
b. Inception-to-date: $26,509,498

VII.The number of investments that failed:
a. FY23 investments: 0
b. Inception‐to‐date: 60 failures, $6,238,600 invested

VIII. Number of companies created or expanded and the number of patents filed during FY23:
a. FY23:
i. Companies created or expanded: 54 companies
ii. Number of Patents filed: 96

b. Inception‐to‐date:
i. Companies created or expanded: 3052
ii. Number of Patents filed during FY23: 171

2 VVP has invested in 305 companies from inception through FY2023. This is a downward adjustment from 309 total companies in the portfolio
inception-to-date due to the following reasons (309 + 1 (item #1 below) – 5 (item #2 below) = 305:
1. Two of the invested companies merged into one company.
2. Five of the invested companies were acquired and, as part of the acquisition, VVP was granted ownership in the five respective
new entities without additional cash investment.
19

IX. Geographic distribution of investments (based on GO Virginia regions)
a. FY23 investments: 54 of 54 in Virginia (one company failure)
i. Region 1: 0
ii. Region 2: 3
iii. Region 3: 0
iv. Region 4: 11
v. Region 5: 3
vi. Region 6: 0
vii. Region 7: 31
viii. Region 8: 0
ix. Region 9: 6

b. Inception to Date: 157 out of 166 active companies are based in Virginia
i. Region 1: 2
ii. Region 2: 8
iii. Region 3: 2
iv. Region 4: 27
v. Region 5: 10
vi. Region 6: 0
vii. Region 7: 90
viii. Region 8: 1
ix. Region 9: 17

3
Corporate and personal income tax revenue estimated. Corporate tax revenue based on company’s actual revenue in CY2022 Q3 and Q4
(assumes 50% of total reported CY2021 revenues) and CY2023 Q1 and Q2. Personal tax revenue assumes an average salary of $125k per Virginia
employee.
20

Regional Innovation Fund (RIF)
The FY2023 activity below is provided in response to Section 127.D.2B of the Appropriations Act.

B(i) and B(ii) Projects Supported to Date
The Regional Innovation Fund (RIF) provides competitive grants to Virginia-based entrepreneurial
support organizations (ESOs). In FY23, the RIF capacity building grants were awarded to four (4)
entities, bringing the number of projects funded since inception to total eight (8). These grants
totaled $650,000 bringing the total since program inception to $1,450,000 awarded to organizations
to perform regional entrepreneurial support services.

B(iii) - (v) Anticipated and Realized Program Impacts
For the four (4) projects awarded this year, anticipated results as projected by awardees included
the following information.
I. $100 million in capital to be raised over 5 years
II. 378 jobs to be created over 5 years
III. 159 companies to be assisted during the grant period
IV. 9 new companies to be formed during the grant period
V. 967 entrepreneurs educated during the grant period
VI. 2,856 mentor hours to be facilitated during the grant period
VII.113 events held with 2,164 attendees during the grant period

From the two (2) FY21 awardees that submitted out-year reports and the two (2) FY22 awardees
that submitted annual reports in FY23, realized program impacts from inception to date include:
I. $89,096,713 in capital raised
II. 199 jobs created
III. 80 companies assisted during the grant period
IV. 2 new companies formed during the grant period
V. 30 entrepreneurs educated during the grant period
VI. 2,307 mentor hours facilitated during the grant period
VII.40 events held for 2,514 attendees during the grant period
VIII. 12 regional collaborations supported.
21

B(iv) Sources of Investment
Additional sources of investment for the eight (8) projects funded under this program to date include
$775,000 in total funding from the US Navy Mid-Atlantic Tech Bridge, Radford University
Foundation, Roanoke City, Verge, Roanoke-Blacksburg Technology Council, Virginia Tech
Foundation, Truist Foundation, Shenandoah Community Capital Fund, Capital One, Activation
Capital, Kaleo Legal, Albemarle County EDA, Charlottesville City EDA, and the Quantitative
Foundation.

B(vii) Geography Served
To date, the program has supported organizations in GO Virginia Regions 2 (Roanoke-Blacksburg-
Lynchburg), 4 (Richmond-Petersburg), 5 (Hampton Roads), 8 (Shenandoah Valley), and 9
(Charlottesville).
22

ECONOMIC PERFORMANCE
OF KEY AREAS

Commonwealth Commercialization
Fund (CCF)
The FY2023 activity below is provided in response to Section 127.D.2C
of the Appropriations Act.

During FY2023, VIPC awarded 133 CCF grants across four distinct
CCF programs, with an associated commitment of $11,455,841 of
Commonwealth of Virginia funding:

• CCF Private Sector (PS): 100 grants totaling $6,496,850
• CCF Higher Education (HE): 25 grants totaling $1,873,514
• CCF Entrepreneur-in-Residence (EIR): 4 grants totaling
$665,874
• CCF Eminent Researcher Recruitment and Retention (ERR):
4 grants totaling $2,419,603 (includes $2,000,000 in lab &
equipment funded with VRIF bond funding)
23

i. Number of research grants awarded by domain area:
24

ii. State investment per research project:
25
26

iii. Number of eminent researchers attracted and retained: 4
iv. Additional research dollars leveraged as a result of the state investment: $185,511,582
v. Number of new products completed/released to production: 144
vi. Startups created from the research investment: 2
vii. New licenses granted to companies within Virginia: 9
viii. New licenses granted to companies outside Virginia: 50
ix. Geographic distribution of the grant recipients:

Outcomes were reported to VIPC by CCF, CRCF, and VRIF award recipients primarily between
July and September 2023 and generally cover the preceding 12-month period. Award recipients are
required to provide VIPC with commercialization outcomes for five years following the conclusion
of their project. In the FY2023 outcomes reporting cycle, 263 awardee reports were due, and
VIPC received outcomes from 262 of them – a 99.6% response rate. In addition, several award
recipients who were outside their five-year commitment voluntarily provided data that contributed
to the FY2023 outcomes that follow. Since-inception figures, based on outcomes reported through
September 2023, are also shared for follow-on funding, revenue, and products and services.

Funding

Follow-On Funding Revenue
$195,388,881 $56,872,237
27

In FY2023, awardees reported over $195 million in incremental follow-on funding, up from $166
million reported in FY22 and $145 million reported in FY2021. This FY2023 funding total consisted
of $40 million in grants, $147 million in private investment, $4.7 million from other VIPC funding
programs, and $3.4 million from other Commonwealth of Virginia sources, along with in-kind
contributions typically consisting of waived salaries or equipment donations. Since the program’s
inception, awardees have reported $1.13 billion in follow-on funding (representing over 21X leverage
for state funding).

In FY2023, awardees also reported sales and/or revenue totaling nearly $57 million, up from $38
million in FY2022 and $23 million in FY2021. Sixteen awardees reported revenue of more than $1
million each over the past year, with three awardees reporting more than $3 million and one of those
awardees reporting more than $6 million. Since the program’s inception, awardees have reported
revenue totaling $223 million.

In FY2023, awardees reported total headcount of 1,988 supporting their organizations, up from a
total headcount of 1,371 in FY2022 and 842 in FY2021. Headcount is made up of full- and part-time
employees, contractors, and interns.

395 products or services were reported as introduced to the market in FY2023 or planned for
release over the next year.

Award recipients reported intellectual property (IP) creation, including U.S., international, PCT, and
provisional patents. Their reports cited 86 patents granted and 331 patents pending.
28

During FY2023, CCF awards were made to recipients in seven of the nine GO Virginia regions:
Anticipated Changes FY2024
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.

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.

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”.
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Define and prioritize strategic technology domains for investment.
• Launch Virginia Innovation Index.
• Collaborate with other technology-focused and economic development entities.
• 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.

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