bluebox home | Research commercialisation | Services for researchers | Proof of Concept fund
The bluebox Proof of Concept (POC) fund was established in late 2008 to facilitate and accelerate the development of QUT research outcomes to “proof of concept” stage, and ultimately to position projects for commercialisation and adoption by industry and the wider community. POC funding is available for projects involving QUT academic staff and students.
Achieving proof of concept involves adding commercial value to a discovery by generating evidence that the invention or technology actually works and could lead to a commercially viable product, service or process. Proof of concept activities are aimed at progressing the discovery to a stage where (a) additional external investment in the intellectual property (IP) is possible (such as obtaining commercially relevant data that will demonstrate the viability of the project to an investor or provider of further commercial funding), or (b) an industry partner or licensee might agree to take a licence to the discovery.
Typically, POC projects may be defined as occurring after advances are made during curiosity-driven or strategic research. This is usually before the following:
- Full lab-scale demonstration of the invention
- Any pre-production development / prototyping
- Commercial funds for development have been made available
The POC fund is aligned with QUT’s stated vision to undertake high-impact research and development in selected areas, at the highest international standards, reinforcing its applied emphasis and securing significant commercial and practical outcomes.
How much POC funding can I apply for?
Currently, funding of up to $100,000 is available per project. Applicants are strongly encouraged to apply for the amount that is actually needed to achieve the proof-of-concept outcome, and not to under-budget in an effort to increase the likelihood of approval. Similarly, a budget which is unnecessarily padded will not be approved. Funding will normally be awarded for a period of up to 12 months.
What is the minimum / maximum duration of a project?
There is no minimum duration but a maximum duration of 12 months is expected, to be reviewed on an annual basis.
When can I apply for POC funding?
The POC fund is open for applications at any time.
How do I apply for POC funding?
bluebox staff can provide you with an application form which requires the applicant(s) to provide information on technology background, IP position, potential market, competitive environment, technical and commercial risks and possible commercialisation pathway. The application form should be completed in collaboration with a bluebox project manager, who will assist you in its preparation and provide advice.
Applicants are required to provide a budget for personnel, equipment and consumables, and milestones against which the funds will be expended.
What activities are eligible for POC funding?
Suitable projects for POC funding will be those that have a high probability of reaching a significant commercial milestone using the POC funds (eg. building and testing a prototype, completing animal studies, performing comparative tests against a relevant gold standard, experimental data which supports broad application of the technology). QUT must own and have the right to exploit the relevant IP.
Examples of eligible activities include:
- Purchase of consumables and equipment
- Outsourcing of specialised tasks such as in vitro or in vivo studies, prototype construction, synthesis of required compounds, economic feasibility assessment
- Patent costs
- Market assessment
- Equipment essential to the project
- Personnel costs where QUT personnel will be dedicated to the project (Note: tenured academic staff salaries cannot be included)
Funds may be used to engage external contractors or collaborators where this will lead to a better or faster outcome. For example, if the objective is to develop a piece of prototype software, it may be preferable to outsource this task to an external software developer over a three-month period, rather than to have a QUT PhD student or RA complete the same task over the course of a year.
Does the invention have to be protected by patents prior to applying?
No.
Can students apply for POC funding?
Students cannot apply directly for POC funding, but applications can be submitted by a QUT staff member for projects which will involve higher degree research students.
What activities are ineligible?
The bluebox POC fund does not operate as a general research support grant. It therefore cannot be used to fund ongoing research activities already funded, or to leverage research funding sources such as ARC or NHMRC grants.
Do I need to include overheads?
No. If POC funding is to be used to meet costs within QUT, the costs should be only actual direct costs (including any staffing on-costs).
Is POC funding a grant?
No. Although the use of POC funds does not require formation of a start-up company, the nature of the funding is more like an investment than a grant, in that it is intended to achieve a specific commercial outcome. In addition, funding is milestone based upon achievement of the defined objectives.
POC funds cannot be counted toward QUT’s research income as they have been provided by the University.
Who makes the funding decisions?
An internal committee comprised of bluebox senior staff makes POC funding recommendations to the bluebox board based on (a) the completed application, (b) a recommendation from the bluebox manager assigned to the project, and (c) any other due diligence information that is relevant, including reports by external experts or referees.
How long does the application review process take?
Applications are considered on a rolling basis, so once the application has been completed it is normally assessed within four weeks. On some occasions specific issues may be identified which require additional information to be provided, and this may add to the timeframe for approving the release of funds. What are the selection criteria? Your application should be persuasive and:
- Indicate the ways the proposed technology may have a positive economic impact.
- Provide clear grounds that there is a demonstrable and real market opportunity for the technology.
- Clearly express what must be undertaken to achieve a commercial outcome from the project.
- Describe the experience of key personnel; both in the research and development (R and D) process and in the progression to commercialisation.
- Confirm that access to all prior Intellectual Property Rights necessary for this project have been secured and are owned by the Institution.
- Include a clear description of the proposed strategy for commercial exploitation of the technology.
- Be realistic in terms of both the opportunity targeted in the application and the position of the market.
- Give reasonable project costs and adequately justify them in the application.
- Clearly articulate the program of work.
How is funding paid?
The applicant, through their faculty or institute office, will set up a dedicated account into which the POC funds can be transferred by bluebox. Depending on the milestone structure, the funds may be transferred in one lump sum or spread over several tranches.
Are there any other sources of POC funds?
There are a number of external funding schemes which can fund certain POC activities – eg. NHMRC Development grants. bluebox has assisted several QUT groups to apply for NHMRC-D grants, with all successful in receiving funding.
Does POC funding mean that a start-up company has to be formed?
No. The POC fund is specifically targeted at projects for which formation of a start-up company would not yet be feasible. If the POC activities are successful, and there is a commercial case for creating a start-up company, as well as some prospect of securing funding, then a start-up company may be considered.
Are there any intellectual property implications of accepting POC funding?
All IP created using POC funds will be owned by QUT. Similarly, any equipment purchased will be owned by QUT.
Are there any other conditions associated with receiving POC funding?
Recipients of POC funding are expected to comply with the QUT Intellectual Property Policy (http://www.mopp.qut.edu.au/D/D_03_01.jsp) and all other relevant University policies and protocols.
How will success of the project be measured?
The success of each POC investment will be measured by whether it achieves the stated outcomes, and whether this allows the project to be advanced toward commercialisation and uptake by industry. “Fast failure” is also an acceptable outcome – ie. the POC activities may highlight a fundamental impediment to commercialisation (eg. invention does not work as expected under industry conditions, does not perform better than the competition, or the economics do not stack up).
Outcomes from successful POC projects may include credible technical demonstration; patents; licences; start-up companies; jobs / skills creation; innovative technologies and processes.
Recipients of POC funding will be required to submit a detailed report on completion of the POC activities.
