INNOVA is one of the few sources of seed and early-stage investment capital in West Virginia. INNOVA can place equity and near-equity investments into those companies that qualify and successfully complete INNOVA's due diligence process.

INNOVA's typical equity or near-equity investment is $50,000 - $150,000. Companies in which INNOVA invests can expect to receive capital infusions in installments that are based upon the company meeting predefined milestones. INNOVA takes reasonable ownership for equity and charges reasonable interest rates for near-equity investments. For portfolio companies, INNOVA will continue to play an advisory or board role in the companies until exit.

INNOVA's due diligence and mentoring process is significant. Because of the nature of many seed and early-stage companies, applicants can expect several weeks to several months of concentrated work with INNOVA prior to being considered for investment. Most seed and early-stage companies have a great deal of work to do prior to expecting funding due to the maturity stage of the company. INNOVA's investment timing for portfolio companies has taken from four to 16 months from application to investment. However, for those companies that qualify, INNOVA will play a key role in that pre-investment work. INNOVA can deliver commercialization, start-up and business support services to those companies which will significantly increase the companies' chances of success and follow on investment funding.

Among other things, INNOVA's due diligence process will include exploring the backgrounds of the management team, reviewing intellectual property, reviewing significant contracts of the company, conducting technical reviews of the product, holding conversations with industry experts and potential or current customers, and initiating multiple other activities. Finally, companies will be reviewed by INNOVA's Investment Advisory Committee (IAC) which is comprised of experienced venture capitalists and investment professionals.

To be considered for seed and early-stage investment capital by INNOVA, applicants must:

• Complete an INNOVA Preliminary Application for Product Commercialization Services in a clear and concise manner providing all information requested
• Be a West Virginia-based company prior to investment-consideration (INNOVA will not fund relocation expenses)
• Be a product-based company (INNOVA will not consider investments in retail, professional service or other service-based organizations)
• Be substantially through its research and development stage (Typically, this requirement is met when the company has a prototype that is significant enough to demonstrate to potential investors and potential customers. Companies that are still in early R&D may be eligible for INNOVA's Small Business Innovative Research (SBIR) assistance to attract R&D funding through SBIRs.)
• Have a product that has been developed based upon a significant customer need with a clear value proposition
• Be able to make significant and clear progress with an INNOVA investment
• Have a reasonable exit strategy