SEED
Frequently Asked Questions
General
What benefits does SEED offer to awardees?
In addition to providing critical working capital to bridge companies to commercialization, SEED offers value-added benefits, such as publicity and contacts with MTC’s network of investors and professional service providers. MTC is working to foster collaboration in the MA innovation cluster to improve companies' access to information, potential customers, and capital.
How does SEED loan compare with small business or other types of loans?
SEED was established in recognition of the seed-stage capital gap in which capital tends to be unavailable or expensive for companies. To promote the development of renewable energy technologies and in turn the growth of the renewable energy cluster in MA, MTC created the SEED Initiative to provide capital on more favorable terms to seed-stage firms engaged in product development. A SEED loan is offered with a low interest rate. In addition, it is unsecured and does not require interest payments during the 5-year note term. Finally, the convertible loan is meant to encourage companies to focus on product development and fundraising from private sources. Other favorable terms can be found in the SEED term summary.
We are interested in participating in the program, but are concerned about whether our sensitive information can be kept confidential. Can you please clarify your sensitive information policy, particularly any possible exposure of sensitive information we may submit?
It is solely a business decision of the applicant to determine to what extent it is comfortable with submitting sensitive information to MTC in light of the fact that we are a public agency subject to the requirements of the Massachusetts Public Records Act.
As MTC’s policy (set forth in Section 8.1 of the Solicitation) explicitly states, MTC shall not make a determination concerning a particular document’s sensitive or confidential nature unless or until MTC receives a public records request that would entail the information that an Applicant has deemed as sensitive. In other words, MTC does not make a determination as to whether a document is sensitive in nature until there is a request for it. Prior to such a public records request, the information that is properly identified as sensitive or confidential in strict accordance with the policy is generally not publicly available.
As our policy also states, MTC makes a determination as to the sensitive nature of a document once it is requested under the Public Records Act. If Applicant has deemed a document as sensitive, properly identified and submitted it to MTC in strict accordance with the policy, MTC will not, prior to notifying the Applicant and giving the Applicant the opportunity to challenge MTC’s determination, produce a document to a requesting party.
In order for the information that an Applicant submits to be treated as sensitive and confidential in the event that it is requested under the Public Records Act, it is required to be submitted in strict accordance with the procedures for labeling and submission detailed in Section 8 of the Solicitation.
Eligibility
Eligibility is determined based on Pre-Application submission. A 10 business day turnaround is expected. Click here to view eligible technologies.
We are a non-profit organization. Can we qualify?
Unfortunately, SEED targets for-profit entities only.
Our company is located outside of Massachusetts. Can we be eligible if we sell and market our products to Massachusetts?
Unless you are willing to relocate to Massachusetts or establish a majority of your business presence in Massachusetts, you are not eligible for SEED.
Our company is developing a unique business model in providing renewable energy services? Are we eligible?
Although SEED aims to support technology commercialization, certain service-oriented models may be considered eligible. Eligibility would be determined on a case-by-case basis. Pre-Application review is meant to provide quick response to Applicants on product or service eligibility.
Our company has been around for 20 years. We are looking to enter the renewable energy sector. Are we eligible to receive SEED funding to help migrate our existing technology to the renewable energy sector?
No. In general, SEED awardees are companies that have little or no historical revenue and have not received any venture capital investment.
SEED Terms
Please review SEED Term Summary for detailed information on SEED funding terms.
The SEED terms do not work for our company. What can we do?
MTC has attempted to provide funding terms that are attractive to most seed-stage companies and future investors. However, if you have any exceptions to the Funding Agreement and Promissory Note, those exceptions must be specifically identified by the Applicant in writing when submitting the full application, including an explanation as to why a certain term is unacceptable. Any issues or exceptions that an Applicant fails to identify in writing and submit with their Application will not be subject to negotiation or any further consideration by MTC after the full application date.
Matching Funds
Securing Matching Funds is necessary to close a SEED award.
Please clarify the definition of Matching Funds. Is it any amount that exceeds the requested amount – or does it have to be raised and earmarked specifically as the matching funds for the MTC award?
All awards require a minimum 1:1 cash match. The amount does not have to be an exact dollar match so long as the minimum amount, as determined by MTC, is obtained. As noted under the definition of Matching Funds in the Solicitation, equity, debt, or grants are acceptable. However, MTC reserves the right, in its sole discretion, to determine whether the proposed Matching Funds are eligible and/or to modify the required amount of the Matching Funds.
Can matching funds be in-kind contributions?
No.
Does payment based on sales or technology licensing count as a Matching Fund?
No. Licensing payments and sales are considered revenue, and do not qualify as Matching Funds.
How much time do I have to raise the match?
A SEED appllicant has a time window that extends from the date MTC receives the Pre-Application to 180 days after award announcement date, which is the date that the Notification of Financial Award is issued by MTC.
Process and Timeline
How soon will we be able to find out about award decisions?
- For awards up to $100k each, decision is expected within 2-3 months from date of receipt of complete application by MTC.
- For awards greater than $100k each ($500k max), a 4-6 month turnaround is expected, starting on date of receipt of complete application by MTC.
How quickly can you close the award once the award decision has been announced?
Much of the burden of closing is on the Awardee. Once the closing package has been received and deemed complete and satisfactory, MTC requires 10 business days to close and disburse funds. The process of securing and showing proof of matching funds often delays closing.
Will there be some feedback along with any notifications that Awards have not been approved?
Yes. MTC intends to provide helpful feedback to Applicants, and encourages candidates that are not selected to re-apply once the noted issues are addressed.
If you have additional questions, please submit them via email to SEED@masstech.org with subject line “Questions on SEED Solicitation.” This FAQ page will be updated on an ongoing basis.