Programs

CPRIT Entrepreneur in Residence (EIR) Program

Purpose and Overview

The Cancer Prevention and Research Institute of Texas (CPRIT) announces the CPRIT Entrepreneur in Residence (EIR) program to work with qualified investment firms to recruit experienced entrepreneurs interested in forming quality oncology companies in Texas.  The purpose of the CPRIT EIR program is to promote the development of quality oncology companies in Texas and enhance the state’s talent pool of senior level life-science entrepreneurs.

CPRIT EIRs, housed with qualified investment firms, will seek out oncology-related technologies around which to start a new company.  Expected outcomes include:  1) The collaborating investment firm will locate and fund a new company in Texas; and 2) The CPRIT EIR will enter into a senior management position at the new company.  The new company will be eligible to apply for additional CPRIT funding to support ongoing commercialization efforts related to the oncology-related technology.  The cost of the CPRIT EIR program will be shared by CPRIT and the investment firms selected to participate in the program.

Background

About CPRIT: 

In 2007, Texas voters overwhelmingly approved a constitutional amendment establishing CPRIT and dedicating up to $3 billion to invest in groundbreaking cancer research, commercialization and prevention programs and services in Texas.  CPRIT is committed to expediting the innovation and commercialization of cancer research – in turn increasing the potential for a medical or scientific breakthrough – and enhancing access to evidence-based prevention programs and services in Texas.  Through this program and other commercialization efforts, CPRIT strongly encourages the establishment, development and relocation of innovative oncology companies in Texas.  CPRIT’s mission is establishing Texas as the world-class leader in the fight against cancer.

About Texas BioAlliance (TBA):

CPRIT has contracted with the TBA to implement the CPRIT EIR program. TBA was created to work with CPRIT to attract talent, resources and capital required to form and sustain companies commercializing cancer-related products and services in Texas.  

Investment Firm Application Process

Eligibility – To be eligible to participate in the CPRIT EIR program, the investment firm must demonstrate that a portion of its fund is currently dedicated to life science investing and that the fund has adequate investment capital not invested or reserved (at least $50 million in committed funds.)   “Pledged” funds will not be counted towards the eligibility requirements. 

Participating firms are not required to be Texas-based, however, any new company (Newco) formed as a result of the CPRIT EIR program must be headquartered in Texas and conduct substantive business in the state.  Upon formation, the Newco’s executive-level staff, including the CPRIT EIR, will be required to be located in Texas.  

Application and Qualifications –Any investment firm interested in applying for the CPRIT EIR program must first submit an Expression of Interest Form (see below).

TBA will accept applications on behalf of CPRIT from interested investment firms and will perform an initial eligibility screen.  

Investment firms will be qualified based upon their investment track record, including oncology experience and amount available for investment.   In addition, the candidate firms shall provide evidence of relevant experience.  Such experience may be established by showing at least ONE of the following: 

• Demonstration of top quartile returns. (i.e. list of exits)

• Referenced institutional investors. (Firms with tier one institutional investors will be given priority)

• Track record growing multiple early stage companies where the firm was the lead investor and additional outside capital was secured.

A joint committee comprised of members of CPRIT’s Commercial Review Council and TBA staff will review applications. TBA will execute a contract with each selected investment firm.

Proposed Terms

Technology in-licensed and expert services – A substantial portion of the Newco business model will be required to focus on oncology or supportive care for cancer patients for its primary products or technology platform.  The CPRIT EIRs will have access to CPRIT-funded technologies for potential in-licensing, but are not limited to licensing technologies that are from Texas. The CPRIT EIRs can license technologies from anywhere in the world.  In developing Newcos, CPRIT EIRs will have access to CPRIT-funded expert services (e.g. CPRIT VMC Expert Services, CPRIT Incubator programs, etc.).

Funding for CPRIT EIR program– CPRIT anticipates that four (4) entrepreneurs will be funded as part of the initial CPRIT EIR recruitment class.  CPRIT funds may be utilized for general program support including recruitment, recruitment bonus (relocation), salary, benefits, travel and/or necessary and allowable expenses for the CPRIT EIR in developing the Newco.  By law, CPRIT funding may only support cancer-related commercialization efforts.  In the event that the Newco business model is not focused on oncology or supportive care for cancer patients, then the partnering investment firm will be required to repay CPRIT for any funds CPRIT has contributed.

The typical time line and funding per CPRIT EIR is as follows:

• CPRIT will make an initial commitment (first year) of $200,000 and the investment firm will contribute a minimum of $100,000 for each CPRIT EIR. 

• The CPRIT EIR will be expected to form a Newco within 12-18 months of the CPRIT EIR’s selection.

• After the first 12 months of funding, CPRIT and the participating firm will evaluate the progress being made towards developing a Newco. 

• Additional funding will be awarded by CPRIT if warranted.     

Recruitment and Employment – The participating investment firm has complete discretion over all hiring decisions.   If the investment firm has not already identified a candidate for the CPRIT EIR program, TBA will assist in the EIR recruitment on behalf of CPRIT.  

If CPRIT funds are used to pay the EIR’s salary or benefits, then the EIR will be considered an employee of TBA, with such employment ceasing no later than the first round of Newco funding.  In the event that funds contributed by CPRIT are not used to pay the salary or benefits of the EIR, then the CPRIT EIR will be an employee of the investment firm. 

It is anticipated that a significant amount of time will be spent evaluating technology at academic/research institutions and the supporting investment firm.  Office space can be provided by TBA, if necessary.     

CPRIT Funding of Newco – Newcos will be eligible for additional CPRIT funding through any open and applicable CPRIT request for applications.

CPRIT Financial Interest in Newco – If a Newco applies for and receives CPRIT funding, all CPRIT funding (including the amounts contributed for support of the CPRIT EIR program) will be considered when calculating the CPRIT’s financial interest (royalty or equity, as negotiated) in the Newco. CPRIT does not provide Newco with funding, then CPRIT will have no financial interest in Newco.  

Questions and Additional Information Regarding the CPRIT EIR Program

Questions regarding the CPRIT EIR program, including questions regarding this funding opportunity, should be directed to Michael Magnani (michael.magnani@Texasbioalliance.org.) Mr. Magnani may be reached by telephone at (713) 979-9103.  To download the file, please click link below: