FY2025 Operating Plan for the Virginia Innovation Partnership Corporation (VIPC) — June 14, 2024
Summary
This is a letter dated June 14, 2024 from Dale Lachniet, Interim CFO of the Virginia Innovation Partnership Corporation (VIPC), to the Director of the Department of Planning and Budget, enclosing the FY2025 Operating Plan. The letter says VIPC is the operating arm and nonprofit of the Virginia Innovation Partnership Authority (VIPA). The plan lists an Investment Division goal tied to Virginia's $175M SSBCI Venture Capital Program and a goal to place 35-40 total direct investments. It says the Commonwealth Commercialization Fund provides grants of up to $75,000 to startups and up to $300,000 to university researchers. The FY2025 cash budget, in thousands, shows total cash receipts of $41,704, total cash disbursements of $49,725 and an ending balance at 6/30/2025 of $71,188.
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“FY2025 Operating Plan for the Virginia Innovation Partnership Corporation (VIPC) — June 14, 2024.”
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VIPC
VIRGINIA INNOVATION
PARTNERSHIP CORPORATION
June 14, 2024
- Nfichaell\1aul
Director
Department of Planning and Budget
1111 East Broad Street, Room 5040
Richmond, Virginia 23219
Dear Directorl\1aul:
Enclosed please find the FY2025 Operating Plan for the Virginia Innovation Partnership Corporation
(VIPC). VIPC is the operating arm and nonprofit of the Virginia Innovation Partnership Authority
(VIPA). The attached report fulfills the requirements of the Appropriations Act Item 127 C. l (2023
Special Session I).
If you have any questions, please call me at 804-387-8235.
n
Sincerely,
A .-J . ./ ....j--<
.. \
Dale Lachniet
Interim CFO
Virginia Innovation Partnership Corporation
cc: The Honorable Carenl\1errick, Secretary of Commerce and Trade
The Honorable L. Louise Lucas, Chair, Senate Finance & Appropriations Committee
The Honorable Luke E. Torian, Chair, House Appropriations Committee
l\1s. Anne Oman, Staff Director, House Appropriations Committee
l\1s. April Kees, Staff Director, Senate Finance & Appropriations Committee
l\1s. Toni Walker, Associate Director, Department of Planning and Budget
l\1s. Samanthal\1artin, Budget and Policy Analyst, Department of Planning and Budget
Dr. Rita Roy, VIPA and VIPC Board of Directors Chair
- Chris Long, VIPC Board of Directors Finance Committee Chair
2214 Rock Hill Road
Suite 600
Herndon, VA 20170-4228
Tel. 703.689.3000
www.virginiaipc.org
Item 127.C.1 Operating Plan and
Item 127.C.1a All planned and actual revenue and expenditures along with funding sources
FY2025 Operating Plan
June 12, 2024
Table of Contents
Overview 3
FY2025 Operating Plan
Investment Division 7
Commercialization Division 11
Entrepreneurial Ecosystems Division 15
Strategic Initiatives Division 20
Life Sciences Initiative 24
Appendix 27
Budget 29
2
Overview
3
VIPA Mandate
§ 2.2-2351. Short title; declaration of public purpose
B. It is found and determined by the General Assembly that there exists in the Commonwealth a need to support the life cycle of innovation, from
translational research; to entrepreneurship; to pre-seed and seed stage funding; and to acceleration, growth, and commercialization, resulting in the
creation of new jobs and company formation. A collaborative, consistent, and consolidated approach 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. It is also found and determined by the General Assembly that there exists in the Commonwealth of Virginia a need to
(i) promote the technology-based economic development of the Commonwealth by building, attracting, and retaining innovation and high-technology
jobs and businesses in Virginia;
(ii) increase industry competitiveness by supporting the application of innovative technologies that improve productivity and efficiency;
(iii) attract and provide additional private and public funding in the Commonwealth to enhance and expand the scientific and technological research
and commercialization at 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;
(iv) 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;
(v) ensure promotion and marketing of Virginia's statewide innovation economy and support and coordinate regional marketing efforts to align local
and statewide objectives; and
(vi) close the Commonwealth's support gap through pre-seed and seed stage investments, coordination of private investor networks, and shared due
diligence research.
4
Visual Framework
Media
5
FY2025 Operating Priorities
Virginia’s “Compete to Win” economic development strategy relies on Innovation as one of six key pillars to accelerate economic growth 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 and fund managers, 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.
Media
These priorities are embedded into the goals and objectives for each Division below.
6
Investment Division
7
Investment Division
FY2025 Overview
VIPC’s Investment Division was established to support VIPC Virginia Venture Partners (VVP) and any new investment vehicles or related
initiatives. 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 FY2025, drawing on receipt of funding through the U.S. Treasury Department State Small Business Credit Initiative (SSBCI) Program,
VVP will continue focus on investing in Virginia’s traditionally underserved communities, with special focus on both founders self-
identifying as Socially or Economically Disadvantaged Individuals (SEDI) and start-ups arising from geographies classified as “low income”
areas by the Treasury Department’s Community Development Financial Institutions (CDFI) Program. With these funds, VVP will place
investments in scalable tech and non-tech product companies aligned with the sectoral objectives of Virginia’s Innovation Framework for
economic growth, Virginia’s Innovation Index, and the SEDI investment objectives of Virginia’s SSBCI Venture Capital Program.
In FY2025, VVP will also support limited partner positions in selected third-party fund managers through Virginia Invests, VIPC’s newly
launched fund of funds program leveraging Virginia’s SSBCI Venture Capital Program. In the months ahead, VVP anticipates soliciting new
fund participants as it refines the combined direct and indirect investment strategy of Virginia’s SSBCI Venture Capital Program.
Guided by the Virginia Venture Partners Investment Advisory Board (IAB), VIPC management makes all investment decisions. Investments
are also advised by the Division Advisory Committee on Investment, which offers guidance on new investment programs and policies.
8
Investment Division
FY2025 Objectives
VIPC seeks to catalyze, attract, and leverage outside investment capital into Virginia startups and entrepreneur ecosystems impacting
sectors such as life sciences, cybersecurity, energy, and agriculture among others. Primary objectives in FY2025 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
• Continue focus on Seed-Stage I, Pre-Seed investments to address companies at earliest stage of formation including recipients VIPC CCF
grants and Seed investments through flagship VVP Tech, VVP Life Science, VVP Aerospace, and VVP Energy Funds.
• Continue implementation of Virginia’s SSBCI Venture Capital Program to enhance investment capacity, both the number of investments
and dollars deployed through Virginia Venture Partners existing Stage I, II, and III direct investment channels and the extension of
external investment capacity through Virginia Invests.
• Design and implement other direct and indirect investment programs aligned with the objectives Virginia’s SSBCI Venture Capital
Program and VIPA’s enabling legislation.
• Attract and leverage greater out of state private market capital through more structured marketing and outreach. Key elements of this
campaign will include a revised Virginia Venture Partners web presence featuring both VVP’s direct investment program and Virginia
Invests, publication of a periodic e-newsletter featuring salient information on the entrepreneurial and innovation ecosystems in the
Commonwealth and a program of virtual and real-world interaction with throughout the country.
• 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.
9
Investment Division
FY2025 Goals
SSBCI Venture Capital VVP Direct Investment
Objective Virginia Invests External Attraction
Program Management Program
Design, implement and manage Manage LP positions in selected Execute a formal outreach
Metric Identify, diligence, and close a third-party managers and identify, campaign to attract talent,
Virginia’s $175M SSBCI Venture
Capital Program as a sub-allocatee pipeline of Pre-Seed and Seed diligence and close new funds investment capital, resources,
to the Virginia Small Business stage investments and maintain strategically complementary to and innovation, and to raise
Financing Authority (VSBFA) and portfolio performance to recover VIPC VVP investment strategy and visibility and increase
subject to the guidelines of the all invested capital over the life requirements of the Virginia SSBCI participation in Virginia’s
U.S. Department of Treasury State of the investment program. Venture Capital Program. entrepreneurial ecosystem.
SSBCI Program.
Goal Contribute toward Virginia securing Fund of Fund operations, including Launch VVP portfolio company job
Place 35-40 total direct investments. the Virginia Value Add program.
SSBCI Tranche 2 accelerating board.
Virginia’s capital deployment plan. Attract $100M in leveraged capital Number of new funds examined / Expand co-investor network by 50
from private market investors. obligated.
Achieve 33% SSBCI investment in new venture funds.
SEDI businesses. 1x rate of return. Initiate 1,000 entrepreneur Launch Virginia Ventures newsletter
Achieve 100% compliance and timely engagements across Virginia’s local and new Virginia Invests website.
reporting to VSBFA and U.S. Treasury ecosystem.
Department.
10
Commercialization Division
11
Commercialization Division
FY2025 Overview
VIPC’s Commercialization division 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 $75,000 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.
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.
Private Sector Grant Program (PS): PS provides competitive grants of up to $75,000 for pre-seed and seed-stage privately-held Virginia-based technology
and life science startups.
Evaluating for FY2025 new SBIR/STTR Matching Grant Program (SBIR): SBIR provides competitive grants for pre-seed and seed-stage privately-held Virginia-
based technology and life science startups that have been awarded an SBIR or STTR Phase II award from any of the participating federal agencies.
12
Commercialization Division
FY2025 Objectives
Primary objectives in FY2025 include:
• Increase the success rate of high-potential pre-seed and seed-stage technology and life science startups throughout Virginia.
• Increase IP commercialization (patents, licenses, startups, 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.
• Attract outside capital to Virginia’s commercialization ecosystem.
13
Commercialization Division
FY2025 Goals
Objective CCF Higher Ed CCF Entrepreneur in CCF Eminent Researcher CCF SBIR/STTR Matching
CCF Private Sector
Residence (EIR) Recruitment and Grant Program
Retention (ERR)
Metric Increase IP commercialization Partner with Virginia’s public Partner with Virginia’s public
Increase the success rate of high- Provide matching funds for
and startup spinouts from research universities to pair research universities to attract
potential pre-seed and seed- Virginia-based technology and
Virginia’s colleges and academic researchers with and retain exceptional faculty
stage technology and life science life science startups awarded
universities. seasoned entrepreneurs. who have a track record of
startups throughout Virginia. SBIR or STTR Phase II awards
creating commercial spinouts
from participating federal
and generating IP with significant
agencies.
commercial value.
Goal Solicit, evaluate, and fund Solicit, evaluate, and fund Solicit, evaluate, and fund Solicit, evaluate, and fund Solicit, evaluate, and fund
competitive proposals from competitive proposals from R1 and competitive proposals from competitive proposals from pre- competitive proposals from
university-based research teams R2 public research universities to Virginia’s R1 and R2 public seed and seed-stage Virginia-based Virginia-based technology and life
working to commercialize recruit and retain entrepreneurs- research universities to recruit and technology and life science science startups awarded SBIR or
university-developed IP. in-residence who will partner with retain commercialization-minded startups. STTR Phase II awards from any of
academic researchers to bring faculty. the participating federal agencies.
18 grants awarded to university- 45 grants awarded, covering all
technologies and commercial
based research teams at Virginia 6 grants across at least 5 regions of the Commonwealth.
products to market.
public and private colleges and universities
universities. 6 grants across at least 5
universities.
14
Entrepreneurial Ecosystems
15
Entrepreneurial Ecosystems
Entrepreneurial Ecosystem Overview
Competitive grants to Support to programs such as
ecosystem and Virginia Innovation
Acts as a entrepreneurship Commercialization Assistance
development Program (ICAP), Petersburg
supporter, programs Founders Fund, and others
Regional Technical
connector, and Innovation Assistance
convener for Fund (RIF) Partnerships
entrepreneurial
ecosystems and
Virginia
stakeholders Annual corporate Technology
Accelerator
memberships and Industry Connects 10+ Virginia-based,
throughout active board service Engagement
Network
nonprofit accelerators and
Virginia. for state and (“VAN”) incubators for shared learning
regional technology and new collaborations with
industry annual conference
organizations
16
Entrepreneurial Ecosystems
Entrepreneurial Ecosystem Overview
Shenandoah Community RIoT Smart City Works
Capital Fund (Stafford) (Tysons)
(Staunton)
Startup Virginia
434 Accelerator Lighthouse Labs
Charlottesville BioHub Dominion Energy Innovation Center (DEIC)
(Charlottesville) (Richmond)
Regional Acceleration and
Mentoring Program (RAMP)
(Roanoke)
757 Collab
(Norfolk)
The Advancement Foundation The Launch Place Innovate Hampton Roads
(Vinton) (Danville) (Hampton)
17
Entrepreneurial Ecosystems
FY2025 Objectives
VIPC’s Entrepreneurial Ecosystems division was established in July 2020 to support and promote technology-based entrepreneurship
throughout the Commonwealth. EED provides capital, connections, and counsel to entrepreneur support organizations, economic
development agencies, industry associations, and other stakeholders who assist early-stage tech companies and founders. Innovation
ecosystems and startup communities across Virginia have grown considerably as business, civic, and government leaders embrace
technology-based economic development strategies to drive dynamic local and regional growth.
Primary objectives in FY2025 include:
• Through the Regional Innovation Fund (RIF), provide up to $2 million in grant support to entrepreneur support organizations and
economic development agencies that assist high-growth, technology-based Virginia startups and founders.
• Through the Virginia Accelerator Network (VAN), provide Virginia-based nonprofit entrepreneur support organizations with
platforms for networking, peer learning, technical assistance, best-practice sharing, identification of funding opportunities,
development of policy solutions, and other initiatives.
• Through Ecosystem Alignment, promote multi-region collaboration to enhance statewide alignment and coordination.
• Through Rural Innovation and Entrepreneurship, increase opportunities for rural regions of the state.
18
Entrepreneurial Ecosystems
FY2025 Goals
Virginia Accelerator Network Rural Innovation and
Objective Regional Innovation Fund
(VAN) Entrepreneurship
(RIF)
Expand technical assistance, peer Increase opportunities for rural
Deploy over $2M in RIF grant
Metric network development, and flexible regions of the state.
funding to expand availability of
resources to high-growth startup funding opportunities for
accelerators, incubators, and Promote multi-region collaboration
founders.
innovation hubs serving founders to enhance statewide alignment
across the Commonwealth. and coordination.
Goal 300 early-stage founders assisted.
Cohost two statewide stakeholder Increase collaboration with regional
200 startups accelerated/incubated. conferences in FY2025. economic development organizations.
2,000 mentoring hours provided. Host monthly statewide networking Advance outcome measurement of
and educational meetings. regional ecosystems.
1,000 ecosystem event attendees
engaged. Support 4 regional ecosystem events Coordinate ecosystem marketing
per quarter. efforts between statewide and regional
campaigns.
Initiate review of VAN branding in Q1
FY2025 and recommend future
direction in Q2 FY2025.
19
Strategic Initiatives Division
20
Strategic Initiatives
FY2025 Overview
VIPC’s Strategic Initiatives division provides leadership for strategic initiatives that explore and shape programs designed to attract and grow innovation in
the Commonwealth. FY2025 will continue to engage relevant entrepreneurs in the execution of four primary activities: Smart Communities, Public Safety,
Unmanned Systems, and the DHS SCITI Labs program. For emerging technology areas where end users are engaged in the evaluation and adoption of a
technology, Strategic Initiatives may arrange for related niche workforce and training efforts not provided by other Commonwealth entities. In general,
training on specific new technologies is not provided by other Commonwealth entities given the evolving and experimental nature of these capabilities.
Strategic Initiatives will continue to develop the following new areas:
• National Security / Defense Tech, in collaboration with state and federal stakeholders in space, maritime/port security, cybersecurity, critical
infrastructure, and other high growth technology sectors.
• The Public Safety Innovation Center, 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.
• Advanced Air Mobility, working with the Unmanned Systems Center and in cooperation with the Virginia Department of Aviation, work with industry to
identify the optimal location or locations to establish an Advanced Air Aviation Test Site in Virginia.
• Artificial Intelligence/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 FY2025, with the Goal of a defined set of objectives for growth
of the initial capability and coordination with university partners about emerging workforce needs.
• Rural/Energy Innovation Initiative, expanding focus areas for small nuclear, bioreactors, sustainable aviation fuels, hydrogen fuel cells, electric grid,
battery technologies and storage, and other technology sectors as identified. The Success Metric is a framework for evaluating fuel sources against
potential use cases, with the Goal of defining an initial proof-of-concept pilot project.
21
Strategic Initiatives
FY2025 Objectives
Primary objectives in FY2025 include:
Public Safety Innovation Center
• Activities will continue to focus on pilot projects across Commonwealth, with the intent being technologies such as situational awareness, enhanced communications and response
technologies that improve public safety by improving response and helping save lives and property. The Success Metric for FY2025 is a minimum of 3 Public Safety pilot projects in the
Commonwealth. The Goal is community expertise and engagement/adoption around new public safety technology capabilities.
The Virginia Unmanned Systems Center at VIPC
The nexus of Virginia’s activity in UxS – Land, Air, Sea, Space
• Maintain collaboration between businesses, investors, universities, entrepreneurs, and government organizations.
• Continue to support rapid growth of the UxS industries in Virginia, building infrastructure to support growth of cargo and people transport (Advanced Air Mobility, AAM).
• Create new pilot projects with Virginia state agencies and private companies to demonstrate value propositions for UxS technology.
• Develop partnerships for Virginia companies with major service providers (package delivery, public safety, and infrastructure).
SCITI Labs
The SCITI Labs Commercial First Innovation program will continue with the U.S. Department of Homeland Security (DHS) through the first quarter of FY2025
• Detection of environmental threats such as flood and wildfire ignition using networked IoT sensors. The Success Metric is successful data integration of DHS-provided and third-party
environmental 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 Virginia 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, and
dual use of AAM airspace awareness sensors for data sharing with various governmental entities. The Goal is Virginia leadership for use of these capabilities in protecting critical infrastructure.
Smart Communities
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.
22
Strategic Initiatives
FY2025 Goals
National Security / Public Safety Innovation Advanced Air Mobility Artificial Intelligence/ Rural/Energy Innovation
Objective Defense Tech Center Quantum Computing
Pilot programs matching state Position Virginia as a national Focus on solutions for areas such Expand focus areas in
Maintain Virginia’s leadership
and federal stakeholder need in leader in defining a new as Advanced Logistics. Rural/Energy Innovation and
Metric role in Advanced Air Mobility.
other rural technology sectors as
high growth technology sectors generation of emergency
such as space, maritime/port response data sharing identified.
security, cybersecurity, and mechanisms.
critical infrastructure with
innovative solutions.
One new pilot emergency Through the Unmanned Systems Convene a stakeholder-led Develop a framework for
Goal One new pilot implementation. response data sharing project. working group in FY2025 and evaluating innovative solutions
Center and in cooperation with
define a set of objectives that against potential use cases.
the Virginia Department of
Aviation, work with industry to includes growth of the initial
capability and coordination with Define an initial proof-of-concept
identify the optimal location or pilot project.
locations to establish an university partners.
Advanced Air Aviation Test Site
in Virginia.
23
Life Science Initiative
24
Virginia’s Life Science Initiative
General Assembly passed $90 Million investment to launch Virginia’s Life Science Initiative among research
institutions at UVA, Virginia Tech, VCU, and ODU in partnership with VIPA
• $90 million in one-time funds through VIPA
• $47 million for UVA’s Manning Institute for Biotechnology
• $27 million for VT's Fralin Biomedical Research Institute at VTC
• $13 million for VCU’s Medicines for All Institute
• $4 million for ODU's Digital Patient Model
• VIPC is responsible for developing Memorandums of Understanding (MOU) with each University, including strategy
development, program oversight, near-term and long-term performance objectives, ongoing reporting post implementation.
• VIPC shall work in collaboration with the institutions listed above, the Virginia Health Bioscience Research Corporation, and the
Virginia Biotechnology Research Partnership Authority to develop a proposal for a research center of life science in Virginia.
25
Advanced Pharmaceutical Manufacturing (APM) Tech Hub
VIPC is one of three Co-Lead Partners with Commonwealth Center for Advanced Manufacturing (CCAM) and
Alliance for Building Better Medicine (ABBM) for APM Tech Hub worth up to $70M in potential EDA award
• Richmond-Petersburg/Central Virginia
APM hub was selected as 1 of 31 (out of
nearly 400 applicants) EDA designated
tech hubs in the country
• Final application proposal for up to
$70M was successfully submitted to
EDA in February
• APM is the only hub addressing
innovations that will drive US-based
pharmaceutical manufacturing of life
savings and life sustaining medicines
• Virtual site visit conducted in April 2024
26
Appendix
Centers of Excellence
FY2025 Operating Budget
VIPA 29
VIPC 30
27
Centers of Excellence
Independent nonprofit Centers of Excellence under a single state Authority 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. In FY2025, VIPC is working toward greater collaboration and synergy among the Centers along with enhanced financial
reporting and governance transparency as directed by legislation.
28
(In Thousands)
FY2025
Budget
Revenue
Commonwealth Appropriation - General Fund
Centers of Excellence (COE)
Commonwealth Cyber Initiative (CCI) 17,500 • $25.3 million is designated to the
Virginia Biosciences Health Research Corporation (VBHRC aka VA Catalyst) 3,750 Centers of Excellence.
Commonwealth Center for Advanced Manufacturing (CCAM) 3,625
Commonwealth Center for Advanced Logistics (CCALS) 350
Virginia Academy of Science, Engineering and Medicine (VASEM) 125
COE Subtotal 25,350
Life Sciences Research Initiative
University of Virginia Institute for Biotechnology 6,500 • $21 million is designated to the
Virginia Commonwealth University Medicines for All Institute 6,500 Life Sciences Research Initiative.
Virginia Tech Patient Research Center 6,000 • Remaining $69M of total $90M
Old Dominion University Digital Patient Model 2,003 Life Sciences Research Initiative is
Life Science Subtotal 21,003 scheduled to be disbursed in FY26.
FY2025 Virginia Innovation Partnership Corporation (VIPC)
Commercialization
Investment
5,000
3,100
VIPA Budget Entrepreneurial Ecosystems
Strategic Initiatives
Unmanned Systems
Operating
3,000
1,000
1,000
4,036
• $17.1 million is designated to
VIPA.
VIPC Subtotal 17,136
Interest & Misc. Income 125
Total Revenue 63,614
Expenses and Transfers
VIPA Administrative Expense 3
Appropriation transfers to VIPC 17,136
Appropriation disbursements to Centers of Excellence 25,350
Appropriation disbursements to Universities specified in Life Science Research Initiative 21,003
Total Expenses & Transfers 63,492
Consolidated Revenue, Expenses, Transfers and Changes in Net Position
Revenue 63,614
Expenses and Transfers 63,492
Change in Net Position 122
Beginning Net Position 2,622
29
Ending Net Position $ 2,744
Fiscal Year 2025 Operating Budget by Funding Source
Commonwealth Projects Funded By Appropriation & Other Revenue
(in thousands)
Revenue
Commonwealth Appropriation - General Fund $ 17,136
Interest, Sponsorship, Return on Investment & Miscellaneous Income $ 3,776
Total Revenue $ 20,912
Expenses
Commercialization Division $ 9,795
Investment Division $ 6,950
Entrepreneurial Ecosystems Division $ 3,545
Strategic Initiatives $ 1,135
Unmanned Systems $ 1,122
Policy, Communications and Commonwealth Engagement $ 1,888
Under (Over) Applied Indirects $ 335
Activities funded by building sale proceeds $ 4,993
Total Expenses $ 29,763
Net $ (8,851)
FY2025 Strategic Initiatives Funded by Contracts & Grants
Program Revenue - UST State Small Business Credit Initiative $ 17,373
VIPC Budget Program Expense
Program Revenue - DHS Commercial First Innovation
$
Profit/(Loss) $
$
17,373
-
2,721
Program Expense $ 2,520
Profit/(Loss) $ 201
Program Revenue - SBA Federal and State Partnership (FAST) Program $ 39
Program Expense $ 39
Profit/(Loss) $ -
Program Revenue - EDA Statewide Planning Grant $ 22
Program Expense $ 22
Profit/(Loss) $ -
Program Revenue - Fairfax Founders Fund $ 10
Program Expense $ 8
Profit/(Loss) $ 2
Consolidated Revenue & Expenses & Changes in Net Position
Total Revenue $ 41,077
Total Expenses $ 49,725
Change in Net Position $ (8,648)
Beginning Net Position $ 72,688 30
Ending Net Position $ 64,040
FY2025 VIPC Budget
Operating Funds Designated Funds
COV Other COV
Investment Division Entrepreneurial Strategic Unmanned Building Sale
Corporate Grants & SSBCI VVP Commercialization Ecosystems Initiatives Systems Proceeds for
Contracts Division Division Fund Fund Opp Fund/ Total
127.O
(In Thousands)
Beginning Balance at 7/1/2024 $ 2,475 $ 1,399 $ - $ 14,380 $ 27,476 $ 7,144 $ 120 $ 135 $ 19,560 $ 72,688
REVENUE
General Fund Appropriation $ 4,036 $ 3,100 $ 5,000 $ 3,000 $ 1,000 $ 1,000 $ 17,136
Interest, Sponsorship, Return on Investment $ 1,917 $ 1,501 $ 358 $ 3,776
Federal and State Grants & Contracts $ 2,792 $ 17,373 $ 20,165
Total Revenue $ 5,953 $ 2,792 $ 17,373 $ 3,100 $ 6,501 $ 3,358 $ 1,000 $ 1,000 $ - $ 41,077
EXPENSES AND TRANSFERS
Operating and Designated Programs $ 6,868 $ 2,608 $ 1,268 $ 904 $ 1,000 $ 1,000 $ 4,500 $ 18,148
Investments/Grants $ 16,472 $ 1,840 $ 7,505 $ 2,270 $ 28,087
Federal and State Grants & Contracts Operating Expenses $ 2,589 $ 901 $ 3,490
Transfers and Indirect Application to Designated Programs $ (500) $ 300 $ 42 $ 80 $ 29 $ 5 $ 5 $ 39 $ 0
Total Expenses $ 6,368 $ 2,889 $ 17,373 $ 4,490 $ 8,853 $ 3,203 $ 1,005 $ 1,005 $ 4,539 $ 49,725
Net Change $ (415) $ (97) $ - $ (1,390) $ (2,352) $ 155 $ (5) $ (5) $ (4,539) $ (8,648)
Forecasted Ending Balance at 6/30/2025 $ 2,060 $ 1,302 $ - $ 12,990 $ 25,124 $ 7,299 $ 115 $ 130 $ 15,021 $ 64,040
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
31
Governance
Board of Directors
Chair
Dr. Rita Roy Dr. Barbara Boyan
CEO, National Spine Health Foundation Executive Director, Institute for Engineering and Medicine, Virginia Commonwealth University
Vice Chair
The Honorable Caren Merrick Shashikant Gupta
Commonwealth Secretary of Commerce and Trade Chairman, Gupta Family Foundation
Co-founder and Former CEO of Apex CoAdvantage
Secretary
Richard Hall
Managing Director, Orion Capital
Christopher Long
President & CEO, Washington Resources Associates Media
Treasurer
Rob Quartel Kelley Powell Williamson
Executive Board Chairman, NTELX Managing Partner, Kefiweh Group
President, Kelley W. Powell, Inc
Monique Adams Lindsay Winter
Former Executive Director, 757 Angels Virginia Public Policy, Amazon
Executive
Joseph Benevento
CEO and President
32
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 fund of funds
Item 127.C.1.b and C.1.e
As illustrated in item 127.C.1.b and C.1.e FY2025 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 $28.087M.
Objectives Success Metric FY25 Measure Budget Grant/
Investment Amount
Virginia Venture Partners State Small Business Credit Initiative Venture Capital Number of investments 40-45 pre-seed, seed, and follow-on $12.000M
Direct Investment Program* – Identify, process and close a robust pipeline of seed investments (90%)
stage investments and maintain portfolio performance to recover all invested
Leverage Cash: amount of initial At least $75M
capital over the life of the investment program.
and follow on investment from
non-Commonwealth sources
Rate of Return 1 x ROR
Virginia Invests* – Virginia State Small Business Credit Initiative Venture Capital Deploy State Small Business Credit Contingent upon fund capital calls $4.472M
Fund of Funds Investment Program Initiative Venture Capital Indirect
Fund of Funds Investment Program
Virginia Venture Partners Direct Investment Program – Identify, diligence, and close Number of investments 40-45 pre-seed, seed, and follow-on $1.840M
a pipeline of Pre-Seed and Seed stage investments and maintain portfolio investments (10% + non-SSBCI)
performance to recover all invested capital over the life of the investment program.
Commonwealth Commercialization Fund (CCF) drives economic growth by funding Stimulate technology Deploy by 6/30/2025 – reflects Private $7.505M
innovative technology research, development and commercialization in Virginia, commercialization, new company Sector, Higher Ed, Eminent Researcher and
with particular emphasis on eminent researchers, research infrastructure, and formation, jobs Recruitment, Entrepreneur in Residence,
increased commercialization in higher education, the private sector, and research SBIR/STTR Matching Grant Programs
institutes.
Entrepreneurial Ecosystems – Administer the Regional Innovation Fund (RIF) as the Deploy $2.0M in grant funding Deploy by 6/30/2025 $2.270M
vehicle through which the Commonwealth grows regional entrepreneurial
ecosystem coordinating entities.
*Fund source outside of appropriated budget Total $28.087M
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 2025 Cash Budget
(in thousands)
Revenue
Commonwealth Appropriation - General Fund
Centers of Excellence (COE)
Commonwealth Cyber Initiative (CCI) 17,500
Virginia Biosciences Health Research Corporation (VBHRC aka VA Catalyst) 3,750
Commonwealth Center for Advanced Manufacturing (CCAM) 3,625
Commonwealth Center for Advanced Logistics (CCALS) 350
Virginia Academy of Science, Engineering and Medicine (VASEM) 125
COE Subtotal 25,350
Life Sciences Research Initiative
University of Virginia Institute for Biotechnology 6,500
Virginia Commonwealth University Medicines for All Institute 6,500
Virginia Tech Patient Research Center 6,000
Old Dominion University Digital Patient Model 2,003
Life Science Subtotal 21,003
Virginia Innovation Partnership Corporation (VIPC)
Commercialization 5,000
Investment 3,100
Entrepreneurial Ecosystems 3,000
Strategic Initiatives 1,000
Unmanned Systems 1,000
Operating 4,036
VIPC Subtotal 17,136
Interest and Miscellaneous Revenue $ 125
Total Revenue $ 63,614
Expenses and Transfers
VIPA Administrative Expenses $ 3
Appropriation disbursements to Centers of Excellence $ 25,350
Appropriation disbursements to Universities specified in Life Science Research Initiative $ 21,003
Appropriation disbursements to VIPC $ 17,136
Total Expenses and Transfers $ 63,492
Consolidated Revenue, Expenses, Transfers, and Changes in Net Position
Total Revenue $ 63,614
Total Expenses and Transfers $ 63,492
Change in Net Position $ 122
Beginning Net Position at 7/1/2024 $ 2,622
Ending Net Position 6/30/2025 $ 2,744
Virginia Innovation Partnership Corporation
Fiscal Year 2025 Cash Budget
Operating Funds Designated Funds
COV Other COV
Investment Division Entrepreneurial Strategic Unmanned Building Sale
Corporate Grants & SSBCI VVP Commercialization Ecosystems Initiatives Systems Proceeds for
Contracts Division Division Fund Fund Opp Fund/ Total
127.O
(In Thousands)
Beginning Balance at 7/1/2024 $ 3,138 $ 1,729 $ 4,651 $ 14,605 $ 27,338 $ 7,182 $ 826 $ 163 $ 19,577 $ 79,209
Cash Receipts
General Fund Appropriation $ 4,036 $ 3,100 $ 5,000 $ 3,000 $ 1,000 $ 1,000 $ 17,136
Interest, Sponsorship, Return on Investment $ 1,917 $ 1,501 $ 358 $ 3,776
Contracts & Grants $ 2,792 $ 18,000 $ 20,792
Total Cash Receipts $ 5,953 $ 2,792 $ 18,000 $ 3,100 $ 6,501 $ 3,358 $ 1,000 $ 1,000 $ - $ 41,704
Cash Disbursements
Operating and Designated Programs $ 6,868 $ 2,608 $ 1,268 $ 904 $ 1,000 $ 1,000 $ 4,500 $ 18,148
Investments/Grants $ 16,472 $ 1,840 $ 7,505 $ 2,270 $ 28,087
Federal and State Contracts & Grants $ 2,589 $ 901 $ 3,490
Transfers and Indirect Application to Designated Programs $ (500) $ 300 $ 42 $ 80 $ 29 $ 5 $ 5 $ 39 $ (0)
Total Cash Disbursements $ 6,368 $ 2,889 $ 17,373 $ 4,490 $ 8,853 $ 3,203 $ 1,005 $ 1,005 $ 4,539 $ 49,725
Net Change $ (415) $ (97) $ 627 $ (1,390) $ (2,352) $ 155 $ (5) $ (5) $ (4,539) $ (8,021)
Ending Balance at 6/30/2025 $ 2,723 $ 1,632 $ 5,278 $ 13,215 $ 24,986 $ 7,337 $ 821 $ 158 $ 15,038 $ 71,188
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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